🇨🇳 CHINA TECH TOP 5 | XPEV +120% EV Export Boom 2025

Published: January 2, 2026 | Category: China Tech, Emerging Markets, EV

China tech RALLIED hard in 2025! Hang Seng Tech Index +30% YTD – best performance since 2017! 🇨🇳 The DeepSeek AI breakthrough in January triggered a massive re-rating of Chinese tech stocks, while President Xi Jinping’s tech summit with Jack Ma signaled a regulatory thaw.

The Hang Seng Tech Index trades at around 10x P/E vs US 26x = massive discount! China’s “Seven Titans” (Alibaba, Tencent, Xiaomi, BYD, SMIC, NetEase, Meituan) are gaining momentum while the US “Magnificent Seven” faces challenges. Goldman Sachs and UBS see further re-rating potential.

2025 Performance Analysis

XPeng emerged as the top-performing Chinese EV stock in 2025, surging 120% on explosive delivery growth and international expansion. Full year 2025 deliveries reached 434,550 units, a stunning 126% YoY increase, making XPeng the world’s sixth-largest EV player.

The company achieved ADAS leadership with XNGP achieving 86% monthly active user penetration in urban driving—comparable to Tesla’s Full Self-Driving. XPeng opened its first European R&D center in Munich and announced plans to mass-produce L4 autonomous vehicles by 2026.

Global expansion accelerated dramatically: overseas deliveries reached 39,773 units through November (+95% YoY), with presence in 52 countries and 321 outlets. XPeng announced localized EV production in Malaysia, its third global manufacturing site, with mass production starting in 2026.

2026 Outlook

Analysts project 24% annual revenue growth with improving profitability. Key 2026 catalysts include: L4 autonomous vehicle mass production, IRON humanoid robot launch, Malaysia factory ramp-up, and continued ADAS penetration expansion. XPeng aims for 50% of total sales from international markets by end of 2025.

2025 Performance Analysis

Alibaba emerged as the market’s favorite Chinese AI stock in 2025, gaining nearly $100 billion in market value. The stock was up 50% by mid-February alone after DeepSeek’s breakthrough and the historic Xi Jinping-Jack Ma meeting signaled regulatory thaw.

Cloud revenue surged +18% with AI products achieving triple-digit growth. Alibaba’s Qwen AI model hit 10 million downloads within 7 days of public beta—faster than ChatGPT, OpenAI’s Sora, and DeepSeek. Qwen is now downloaded over 600 million times globally, with Airbnb, Perplexity, NVIDIA, and Meta all using it.

Alibaba pledged $52 billion investment in AI and cloud infrastructure over the next three years—more than it spent in the past decade. Apple partnered with Alibaba to bring AI features to Chinese iPhones, a major vote of confidence in its AI prowess.

2026 Outlook

23 analysts rate BABA “Strong Buy” with mean target price of $198.58 (+30% upside). FY2027 EPS projected to grow 50% to $8.57. Key catalysts include: Qwen AI monetization, cloud market share expansion (already #1 in China), instant commerce growth, and continued regulatory normalization.

2025 Performance Analysis

Xiaomi delivered a breakthrough year with its Smart EV success story—the Xiaomi SU7 is now outselling Tesla Model 3 in China! The company’s market cap surpassed HK$1 trillion ($128 billion), driven by both smartphone strength and EV momentum.

Xiaomi rose 34% in just one month during the DeepSeek-driven rally. The company integrates AI across its vast ecosystem of smartphones, smart home devices, and now electric vehicles, creating a unique “Human x Car x Home” intelligent ecosystem.

The company is aggressively expanding EV production capacity and has announced plans for international EV sales. Xiaomi’s ability to leverage its existing retail network and brand loyalty for EV distribution gives it a significant competitive advantage.

2026 Outlook

Key catalysts for 2026 include: EV production ramp-up and international expansion, continued smartphone market share gains, smart home ecosystem monetization, and AI integration across product lines. Xiaomi’s low-cost AI model integration could drive significant competitive advantage.

2025 Performance Analysis

NetEase delivered strong performance driven by gaming IP international expansion. The company’s focus on high-quality, original gaming content has differentiated it from competitors relying on licensed IP.

International revenue growth continued to accelerate as NetEase’s games like “Naraka: Bladepoint” and others gained traction in Western and Asian markets. The company’s investment in AI for game development and user experience enhancement positions it well for 2026.

NetEase also benefits from music streaming (Cloud Music) and education businesses, providing diversification beyond gaming. The regulatory environment for gaming in China has stabilized, removing a key overhang.

2026 Outlook

Key 2026 catalysts include: continued international gaming expansion, new game launches leveraging AI, Cloud Music monetization improvement, and potential re-partnership with Blizzard Entertainment. NetEase’s strong IP portfolio positions it well for metaverse and AI-enhanced gaming trends.

2025 Performance Analysis

Tencent delivered solid gains anchored by its WeChat ecosystem and gaming franchise. Gaming revenue grew +13% YoY, demonstrating resilience in the Chinese market and continued international expansion. Brand value reached approximately $129 billion.

Tencent’s diversified cash engines in social, gaming, and cloud provide a stable base for AI productization. Mini-programs within WeChat and international game hits take China-built software to billions of users globally.

The company raised 9 billion yuan ($1.27 billion) via dim sum bonds in 2025—its first bond sale in four years—signaling renewed capital market confidence. Tencent is investing in both in-house and open-sourced AI models for its ecosystem.

2026 Outlook

Key 2026 catalysts include: WeChat ecosystem AI integration, continued gaming franchise expansion, cloud business acceleration, and potential regulatory normalization. Tencent’s measured capital spending approach on AI positions it for sustainable profitability while competitors invest more aggressively.