Which Stocks Are Leading the China Tech Rally?

Which Stocks Are Leading the China Tech Rally?

Tencent [TCEHY] shares hit their highest level since 2021 on Monday, rising 3.7% in Hong Kong to $512, as its WeChat app began beta testing integration with DeepSeek’s artificial intelligence (AI) model. Rival Baidu [BIDU], which is also adopting DeepSeek’s AI, fell 8.6%, partly due to profit-taking ahead of Tuesday’s earnings call, Bloomberg reported. Elsewhere, according to the BBC, South Korea has banned new downloads of DeepSeek’s chatbot over data privacy concerns. 

Jinping Signals Support for Tech Titans 

Chinese President Xi Jinping met with top entrepreneurs on Monday, among them Alibaba’s [BABA] Jack Ma, Huawei Founder Ren Zhengfei, Xiaomi [XIACF] CEO Lei Jun and Unitree Robotics Founder Wang Xingxing. The meeting signaled Ma’s political rehabilitation after Beijing’s tech crackdown, the Financial Times reported, after the entrepreneur’s notorious 2020 speech criticizing regulators led to Ant Group’s IPO cancellation. 

This Week’s Tech Earnings: What to Look Out For

After yesterday’s holiday, there are several important tech-related earnings to look forward to this week, including two major Chinese tech stocks. Baidu reports today before market open; analysts forecast a 38% decline in profits, according to Seeking Alpha. Alibaba reports Thursday, with many analysts rating the stock a ‘buy’. Other reports of note include Medtronic [MDT], on Tuesday; SolarEdge Technologies [SEDG] on Wednesday; and MercadoLibre [MELI] and Rivian Automotive [RIVN] on Thursday. 

Medtronic Earnings Preview: Poised to Rally?

While Q2 2024 results were strong but uninspiring, in recent months Medtronic has received approval for its continuous glucose monitoring software for patients with diabetes and deep brain stimulation therapy for patients with Parkinson’s disease. While the firm faces continued challenging macroeconomic conditions, can its innovation and product pipeline boost its stock price?

Japan’s Solar Challenge to China 

The Japanese government is investing $1.5bn to commercialize next-gen perovskite solar panels, which are thinner and bendier than legacy panels, the Financial Times detailed. This move could disrupt China’s renewable energy dominance by enabling mass solar adoption in space-constrained areas. Sekisui Chemical [SKSUY] is leading the development, backed by significant government subsidies.

Leqembi Maker Seeks Partnerships

Swedish biotech BioArctic [BRCTF], known for its Alzheimer’s drug Leqembi, is in talks with major pharmaceutical companies to license its “brain transporter” technology, which enables drugs to cross the blood-brain barrier; late last year, the company signed its first deal with Bristol Myers Squibb [BMY] worth up to $1.4bn. The company’s share price has risen more than 10% this year, according to the Financial Times. 

TikTok Takes on Shein

TikTok Shop, owned by ByteDance, outpaced Shein and PDD Holdings’ [PDD] Temu in US sales, which rose 153% in January compared to 26% for Shein and 28% for Temu, Bloomberg detailed. This success comes despite ongoing trade tensions impacting Chinese companies in the US and the looming threat of the ban. Read OPTO’s deep dive into the social media space as it currently stands.