Chinese technology giants are outpacing their U.S. counterparts as demand for Chinese stocks surges, fueled by factors like DeepSeek. Many investors believe the stellar performance of these Chinese companies is far from over. A group of seven major Chinese tech firms, including Alibaba and Tencent, has seen its stock value rise by over 40% this year, according to Société Générale, which refers to them as the "Seven Giants."
In contrast, an index of seven major U.S. tech stocks has fallen by 10%, contributing to the Nasdaq 100 Index nearing a correction. Despite the recent surge in valuations of Chinese tech giants, analysts like Frank Benzimra from Société Générale argue that these valuations remain manageable. As of the latest report, the forward price-to-earnings ratio for this group stands at 18 times, representing a discount of over 40% compared to the American "Seven Giants."
The list of China's "Seven Giants" is determined based on market capitalization and growth, and also includes Xiaomi, BYD, SMIC, JD.com, and NetEase.
