In this article, we will take a look at the 10 Best Performing Chinese Stocks So Far in 2025.
Chinese stocks have rallied in 2025 since the surprising launch of the DeepSeek AI model. The smart and lower-powered LLM AI tool has created a wave in the global AI industry, with the U.S. stock market losing over $1 trillion right after the DeepSeek launch.
Also Read: 10 Chinese Penny Stocks to Buy According to Analysts
China’s Ready to Embrace the Tech Sector
Chinese stocks have continued their momentum weeks after the launch of DeepSeek as China’s President Xi Jinping recently held meetings with Chinese tech and start-up leaders, indicating a more friendly approach to the sector. According to a Bloomberg report, the meeting included Alibaba co-founder Jack Ma and DeepSeek founder Liang Wenfeng. Ma’s presence was the highlight as investors saw it as a positive sign that Chinese officials were ready to embrace the tech sector. Ma has had a history with the Chinese government for speaking out against regulators, therefore, his presence is considered a symbolic gesture.
According to reports, Jinping has given a green signal to tech start-up leaders to remain competitive and ensured that the government would not impose unwarranted fines.
“The decision to call for such a meeting likely indicates the importance of technology innovation and the contribution of private enterprises to the development and growth of China’s economy. We view the emphasis on internet and tech providing valuation multiple support for China’s internet sector,” Citigroup analysts wrote in a research note, as per Bloomberg.
Despite the Chinese economy facing deflationary headwinds and a struggling property market, Hong Kong’s Hang Seng Index has surged over 15% year-to-date, driven by Chinese tech stocks.
Do Chinese tech stocks hold the potential to deliver a full-year rally driven by the AI boom, similar to the rally U.S. tech stocks experienced in 2024? Well, Chinese companies have the potential, and DeepSeek has proven what Chinese tech start-ups are capable of doing. However, China’s economy is in a very different place from the United States, and regulation can be difficult to predict.
With that said, let’s take a look at the 10 Best Performing Chinese Stocks So Far in 2025.
Our Methodology
We used the Finviz screener to shortlist 20 companies with a market capitalization of over $300 million. We ranked the 10 best-performing Chinese stocks with the highest returns year-to-date in ascending order of the YTD returns, as of February 19. We have also listed the number of hedge funds holding these stocks as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Performing Chinese Stocks So Far in 2025
10. Alibaba Group Holding Limited (NYSE:BABA)
No. of Hedge Fund Holders: 107
YTD Returns: 50.84%
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese holding company with nine segments. The company serves the e-commerce retail segment in domestic and international markets. It also has businesses in local consumer services, logistics, cloud, digital media, and entertainment.
Alibaba just released Q3 2024 earnings, which surpassed the earnings and revenue estimates driven by strong year-end shopping sales and the success of its strategy to attract cost-conscious consumers. The company posted revenue of $38.58 billion or 280.15 billion yuan, beating estimates of $38.47 billion or 279.34 billion yuan.
Apart from the company’s strong performance in its core businesses, Alibaba is investing in AI. The company has revealed its AI model Qwen, advancing with the launch of the Qwen 2.5-VL model, which acts as an AI agent capable of controlling users devices, adding real-world utility to its technology. Alibaba’s strategic move to enter the Gen AI race, especially after its partnership with Apple on AI features, has placed it as a top contender in the AI space for 2025.
On February 17, Jefferies analyst Thomas Chong raised the price target on BABA shares from $150 to $156, keeping a Buy rating on the shares. The analyst is optimistic about Alibaba Group Holding Limited’s (NYSE:BABA) growing impact of AI advancements and cloud expansion. In addition, the Chinese e-commerce giant is expected to achieve 8-10% top-line growth through FY26, supported by rising adoption of Qwen’s models and accelerating demand for AI services.
9. Yiren Digital Ltd. (NYSE:YRD)
No. of Hedge Fund Holders: 2
YTD Returns: 56.03%
Yiren Digital Ltd. (NYSE:YRD) is a Chinese holding company mainly engaged in operating a digital personal financial management platform, wealth, credit, and financial solutions. The company’s two major segments include Wealth and Credit. Its third segment operates an electronic commerce business that offers products such as skincare and beauty, electronics, and appliances. The platform allows users to finance purchases through loan products while offering customized non-financial products and services.
Yiren Digital Ltd. (NYSE:YRD) has successfully integrated AI into daily operations, improving efficiency and customer experience. The company has also integrated Deepseek, affirming its commitment to pioneering AI-driven innovation in financial and lifestyle services in China.
The company is making massive strides in attracting loan volumes and with the addition of AI, things will get more efficient for YRD. In Q3 2024, Yiren Digital Ltd. saw a 36% year-over-year growth in total loan volumes, reported around 13.4 billion yuan. The company’s total premiums for its insurance brokerage business saw a 27% sequential growth. YRD has significantly improved its asset quality, supported by strong risk management and borrower optimization.
For Q4 FY2024, Yiren Digital Ltd. (NYSE:YRD) is expected to generate total revenue between 1.3 billion yuan and 1.5 billion yuan, with a healthy net profit margin.
8. Zhihu Inc. (NYSE:ZH)
No. of Hedge Fund Holders: 8
YTD Returns: 56.35%
Zhihu Inc. (NYSE:ZH) is another Chinese holding company that operates an online content community. The company is mainly engaged in the provision of advertising services, paid membership services, content monetization solutions, and other services. Zhihu also offers technology, business support, consulting, information transmission, software, IT, and internet services.
Zhihu Inc. is emerging as a leader in China’s content-driven online community, with its core focus on AI and high-quality content creation driving user engagement and positioning the company for profitability. The company is unprofitable but has reduced its losses over the past five years by 15.2% annually. This shows the company’s potential for improvement despite ongoing losses. In Q3 2024, the company indicated to reach break-even in Q4, after a robust performance during the quarter.
During Q3, the company’s paid membership revenue was reported at around 459.4 million yuan, a rise of 11.5% year over year and added 16.5 million new members to the platform. The company’s user engagement also shows significant progress, with daily active user time span increasing by almost 20% year over year. The company’s increased traffic reflects the strong growth in its AI-driven features.
Zhihu Inc.’s (NYSE:ZH) gross profit margin was around 63.9%, a significant milestone as it reached its highest point since its listing. To reduce its losses, the company reported a substantial reduction in total costs and operating expenses, decreasing by more than 35.6% and 30.5%, respectively.
7. EHang Holdings Limited (NASDAQ:EH)
No. of Hedge Fund Holders: 11
YTD Returns: 68.96%
EHang Holdings Limited (NASDAQ:EH) is an investment holding company involved in the business of UAV systems and solutions. The company is engaged in designing, developing, manufacturing, and operating Autonomous Aerial Vehicles (AAVs) and supporting systems. EHang also manufactures passenger transportation, logistics, smart city management, and aerial media solutions.
EHang Holdings Limited’s flagship EH216-S pilotless passenger-carrying aerial vehicle has gained traction with stronger-than-expected market demand. Recently, EH216-S completed its inaugural demo flight in downtown Shanghai, showcasing its commercial capabilities. The demo flight indicates the company’s aims to realize urban air mobility in mega-central cities. The growing demand for EH216-S is expected to be a key driver for the company’s improved performance in Q4 FY2024. The company is expected to generate 162 million yuan in total revenues in Q4, indicating a 20% increase from the guidance of 135 million yuan.
For FY2024, EHang Holdings Limited (NASDAQ:EH) expects revenue to reach 454 million yuan, a 6% increase from the previous guidance of 427 million yuan and a remarkable 287% year-over-year increase. On January 2, equities research analysts at CICC Research initiated coverage of EH and gave an Outperform rating with a price target of $18.13.
6. Wing Yip Food Holdings Group Limited (NASDAQ:WYHG)
No. of Hedge Fund Holders: N/A
YTD Returns: 69.43%
Wing Yip Food Holdings Group Limited (NASDAQ:WYHG) is a Hong Kong-based holding company that is engaged in the production and distribution of food products, primarily through its subsidiaries. WYHG made its debut on Nasdaq in November 2024, raising over $8.2 million in net proceeds. The company has established distribution channels and a strong position in the food industry, with a stronghold in various Asian markets, and is now aiming for growth in international markets.
Wing Yip Food Holdings Group Limited (NASDAQ:WYHG) has a diversified product line including specialty food items, sauces, seasonings, and packaged goods. The company has direct distribution channels as well as a network of partners including retail stores, restaurants, and wholesalers. With an efficient supply chain, the company’s subsidiaries maintain its dominance as a leading provider in the Asian food sector, supported by traditional culinary products and modern, convenience-driven food trends.
The company’s exposure to growing Asian food markets adds to its growth prospects moving forward. The proceeds from the IPO will also support growth initiatives, including expansion into new markets and improved product offerings. Despite the strong brand presence and expansion plans, Wing Yip Food Holdings Group Limited (NASDAQ:WYHG) faces regulatory and operational risks due to its strong ties to mainland China.
5. Tuya Inc. (NYSE:TUYA)
No. of Hedge Fund Holders: 13
YTD Returns: 72.88%
Tuya Inc. (NYSE:TUYA) is an IoT company offering cloud platform services, emphasizing smart solutions and AI capabilities. The company has a vibrant global developer community, improving its ecosystem’s growth and innovation. Tuya provides a wide range of services, including PaaS and SaaS, catering to diverse industry needs.
Tuya Inc. (NYSE:TUYA) recently partnered with Chinese automaker Chery to create a smart cockpit and accelerate the integration of automotive and home ecosystems. Chery will leverage Tuya’s cutting-edge smart space solutions for passenger vehicles. This is a major deal for the company that will have a positive impact on Tuya’s growing presence in the smart solutions segment.
During the third quarter of 2024, the company posted a top-line growth of 33.6% to $81.6 million. The smart solutions segment experienced a remarkable 100% year-over-year revenue growth, driven by strong market demand. Moreover, the company’s IoT PaaS and SaaS segments posted 26.4% and 17% year-over-year revenue growth, respectively. Tuya Inc. has a strong cash position with a balance of $1.02 billion.
4. GDS Holdings Limited (NASDAQ:GDS)
No. of Hedge Fund Holders: 32
YTD Returns: 82.87%
GDS Holdings Limited (NASDAQ:GDS) is engaged in the development and operations of data centers, providing services including colocation, managed hosting, and cloud services to internet firms, telecom carriers, financial institutions, IT service providers, and large enterprises.
GDS Holdings Limited (NASDAQ:GDS) has gained from the AI momentum among the Chinese tech giants followed by DeepSeek’s smart AI model. On February 14, Citi analyst Louis Tsang raised the price target on GDS shares from $25.1 to $51.2, keeping a Buy rating on the shares. The analyst cited the growing AI data center-related spending from China cloud service providers as a major catalyst for companies like GDS. Tsang sees the AI capex up-cycle as in the early stage and GDS Holdings Ltd. will benefit from rising overseas data center deployment from “domestic giants.”
GDS Holdings Limited is not yet profitable but has tremendous potential because of the size of its potential market, technological innovation, and the AI trade.
3. Kingsoft Cloud Holdings Limited (NASDAQ:KC)
No. of Hedge Fund Holders: 12
YTD Returns: 83.33%
Kingsoft Cloud Holdings Limited (NASDAQ:KC) is focused on providing cloud services to businesses and organizations primarily in China. The growing demand for AI and cloud-based solutions continues to accelerate Kingsoft’s expansion. The company massively benefits from the integration with Xiaomi’s IoT, cellphones, and electric cars. Xiaomi, a company also chaired by KC’s chairman Lei Jun, poached DeepSeek developer Luo Fuli to join Xiaomi’s Artificial Intelligence development team. This news has attracted investors’ attention as the shares continue to surge.
Xiaomi’s strategic plan to integrate AI into its ecosystem favourably placed Kingsoft as a major partner. Xiaomi’s AI development plan will also create a ripple effect on Kingsoft Cloud Holdings Limited’s (NASDAQ:KC) cloud computing business. The company has already demonstrated strong growth in its AI business, which accounted for almost 31% of public cloud revenue in Q3 2024. The company’s strategic collaboration with Xiaomi and other major players positions it to take advantage of the AI saga.
Analysts at UBS are optimistic about Kingsoft’s ability to capitalize on growth opportunities in the cloud service sector, especially in China. They raised the rating on KC shares from Neutral to Buy, citing a positive revenue outlook and margin recovery as key growth drivers.
2. WeRide Inc. (NASDAQ:WRD)
No. of Hedge Fund Holders: N/A
YTD Returns: 145.56%
WeRide Inc. (NASDAQ:WRD) is a holding company serving the logistics, sanitation, and mobility industries. The company primarily offers products and services related to autonomous driving for categories such as Robotaxi, Donovan, Robot Sweeper, and Robobus. It also serves as a ride-hailing platform through its WeRide Go app.
On January 24, JPMorgan analyst Alex Yao initiated an Overweight coverage on WRD shares, assigning a price target of $21 per share. WRD shares price is already well above the price target set by Yao and is currently trading at around $28 per share. WRD shares have more than doubled in 2025 after Nvidia acquired a minority stake in the Chinese company. Jensen Huang’s firm bought 1.7 million WRD shares as the chipmaker bets on the growing Robotaxi market in China. WeRide was already beating the market in 2025, but now it has more than doubled.
If NVDA’s CEO’s judgment of the company’s potential is correct, WeRide could be set for double-digit growth for multiple years to come. WeRide Inc. (NASDAQ:WRD) remains a prominent player in the autonomous driving (AD) industry, with a diverse range of technologies ranging from Level 2 to Level 4 automation. The company has demonstrated its potential covering 30 cities and nine countries across Asia, the Middle East, and Europe. JPMorgan’s analysts see WeRide Inc.’s strategic positioning and its potential to capitalize on the growing global adoption of autonomous driving technologies over the next three to five years.
1. VNET Group, Inc. (NASDAQ:VNET)
No. of Hedge Fund Holders: 26
YTD Returns: 159.76%
VNET Group, Inc. (NASDAQ:VNET) is one of the leading Chinese data companies. It is principally engaged in providing carrier-neutral and cloud-neutral data center services. The company’s offerings include managed hosting services, cloud services, and virtual private network (VPN) services. VNET stock is skyrocketing due to the booming AI industry in China.
VNET Group, Inc. (NASDAQ:VNET) is improving its financial performance, generating a net income of 317.63 million yuan in Q3 2024, compared to a loss from a year ago. The company has also increased full-year 2024 guidance and expects to generate net revenues between 8 billion yuan to 8.1 billion yuan, a rise of 7.9% to 9.3% year-over-year. The company projects its adjusted EBITDA to be in the range of 2.28 billion yuan to 2.3 billion yuan, representing a year-over-year rise of 16.4% to 17.4%. The increased outlook is driven by faster-than-expected move-ins from VNET’s core customers, while wholesale projects are accelerating the growth of the wholesale internet data center (IDC) business, along with the company’s retail business’ steady progress.
While we acknowledge the potential of VNET to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VNET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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