China stocks are rebounding as the U.S. trade war eases, with the world's largest economies on May 12 agreeing to slash tariffs by far more than expected. Several Chinese stocks that trade in the U.S. are showing strength.
Tesla rivals BYD and Xiaomi, internet giants Alibaba and Tencent, as well as fintech Qifu Technology are all near buy points.
A number of other stocks are still worth watching, including online brokerage Futu Holdings, travel plays Trip.com and Atour Lifestyle.
U.S.-China Trade War
The U.S. imposed 145% tariffs on most Chinese goods, with China retaliating with 125% tariffs on most U.S. goods.
On Monday, the U.S. agreed to cut its China tariffs to 30%, including a 20% fentanyl-related duty. China cut tariffs on American goods to 10%. Those moves followed lengthy weekend trade talks in Geneva.
Various reports had said the U.S. could cut China tariffs to around 50%-60%, perhaps the outer limit for substantial trade. But President Donald Trump said Friday that 80% "seems right."
While most Chinese companies don't have significant direct exposure to the U.S., the trade war is hitting the U.S. and Chinese companies, with the pain expected to deepen over time.
Top China ETFs
Investors wary of buying an individual Chinese stock could choose ETFs such as KraneShares CSI China Internet ETF, iShares China Large-Cap ETF and Xtrackers Harvest CSI 300 China A-Shares ETF. But these ETFs are prone to big gap-ups and gap-downs as well.
Top China Stocks To Buy Or Watch
| Company | Ticker | Industry Group | Composite Rating |
|---|---|---|---|
| BYD | BYDDF | Auto Manufacturers | n.a. |
| Qifu Technology | QFIN | Financial Services-Specialty | 95 |
| Alibaba | BABA | Retail-Internet | 94 |
| Xiaomi | XIACY | Telecom-Consumer products | n.a. |
| Tencent Holdings | TCEHY | Internet-Content | n.a. |
BYD Stock
BYD stock is the world's largest electric vehicle maker, recently passing Tesla in terms of fully battery electric vehicles (BEVs), revenue and net income. BYD also sells batteries for storage and to other EV makers. It also has an electronics division that makes some cell phone components and assembles handsets, including some Apple iPhones.
EV sales are booming, with a big push in self-driving and super-fast charging tech. Overseas sales are racing higher thanks to several new "roll on, roll off" car transport ships and a plant in Thailand. A Brazil plant should be open by mid-year, with factories in Hungary, Indonesia and Turkey beginning operation in 2026.
BYD earnings surged 98% in the first quarter, the second straight quarter of accelerating growth. Revenue rose 36% to $23.5 billion, slightly missing views.
BYD has broken above a 53.35 cup-with-handle buy pointy.
Shares are up 57.1% in 2025 as of May 14.
BYD, listed in Hong Kong and Shenzhen, trades over the counter in the U.S. Its U.S. shares often have mini-gaps as well as opening-trade mini-spikes or tumbles before settling down
Tesla Clears Aggressive Entry, BYD Near Buy Point
Xiaomi Stock
Xiaomi is a major handset maker that entered the EV maker in 2024. Its sole EV, the SU7 sedan outsells the Tesla Model 3 in China. Xiaomi will release the YU7 crossover later this year, taking on the Model Y.
First-quarter earnings rose 64%. Revenue climbed 45% to $14.9 billion, the fifth straight quarter of accelerating growth.
Xiaomi's U.S. shares have regained their 50-day moving average, building a cup-with-handle base with a 34.26 buy point.
XIACY stock has rallied 45.1% in 2025 as of May 14.
Hong Kong-listed Xiaomi trades over the counter in the U.S. Its U.S. shares often have mini-gaps.
Alibaba Stock
Alibaba is an e-commerce, cloud-computing and artificial intelligence giant.
Earnings for the December-ended fiscal Q3 rose 10% vs. a year earlier, up from a fractional gain in Q2 and a 6% drop in Q1. Revenue rose 5% to $38.4 billion, ending two quarters of modestly accelerating growth.
While the bulk of the business remains in e-commerce, cloud-computing growth has been faster. More recently, Alibaba's move in AI has fueled investor excitement. Alibaba will power the AI efforts of Apple iPhones in China.
Alibaba will release fiscal Q4 earnings on May 15, with analysts expecting a 24% EPS gain on an 8% revenue increase.
Alibaba stock has a 148.43 cup-base buy point on a daily chart, with 129.73 as an early entry just above the 50-day line. On a weekly chart, there's a wafer-thin handle with an official 129.73 buy point.
Shares gapped above that 129.73 entry Monday, but upcoming earnings raise the risks.
BABA stock has climbed 58.1% in 2025 as of May 14.
Tencent Stock
Tencent is a messaging and gaming giant. Its WeChat "everything" app is hugely popular in China.
Q1 earnings rose 24% vs. a year earlier while revenue climbed 12% to $24.8 billion, both beating views.
Tencent has a cup base that formed around the top of a prior consolidation. The official buy point is 70. Shares are closing in on that entry.
TCEHY stock has climbed 26.45% so far in 2025.
Hong Kong-listed Tencent trades over the counter in the U.S. Its U.S. shares often have mini-gaps.
Qifu Technology Stock
Qifu Technology is a fintech providing credit to consumers and small businesses, teaming up with financial institutions.
Q4 earnings jumped 86% vs. a year earlier, the third straight quarter of accelerating growth. Revenue fell 3% to $614.1 million.
Q1 results will be released next week.
Qifu stock has cleared a 44.28 cup-with-handle buy point on a weekly chart, which served as an early entry on a daily chart. The daily chart's traditional buy point is 48.94.
QFIN stock is up 17.5% in 2025 as of May 14.
Please follow Ed Carson on X/Twitter at @IBD_ECarson and Threads at @edcarson1971 for stock market updates and more.
