China stocks are rebounding once again amid hopes that a fierce U.S. trade war will ease, though Trump tariffs remain extremely high. 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. has imposed 145% tariffs on Chinese goods, though electronics currently have 20% tariffs. China has retaliated with 125% tariffs on most U.S. goods.
China said Friday that it's "evaluating" whether to accept U.S. overtures for trade talks. Beijing is mulling ways to address President Donald Trump's concerns about the fentanyl drug trade, The Wall Street Journal reported Friday, citing sources.
However, President Donald Trump said Sunday he has no plans to speak with Chinese President Xi Jinping this week.
Trade talks, if they occur, may not lead to reduced tariffs anytime soon. 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 | 96 |
| 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 stock is up 47.1% in 2025 as of May 5.
An emerging consolidation is forming. Investors could view BYD's chart as a mini-cup-with-handle with a 53.35 buy point.
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, BYD Near Buy Points, But For Very Different Reasons
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 the right side of a short, deep cup base with a 37.45 buy point.
XIACY stock has rallied 56.8% in 2025.
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 hit a multiyear high of 148.43 on March 17, then tumbled as Trump tariffs ramped up vs. China. BABA stock found support at the 200-day line and has rebounded to just below the 50-day line. Alibaba has a 148.43 cup-base buy point. Investors could use a decisive move above the 50-day line as an early entry, though upcoming earnings raise the risk.
BABA stock has climbed 49.3% in 2025.
Tencent Stock
Tencent is a messaging and gaming giant. Its WeChat "everything" app is hugely popular in China.
Q4 earnings rose 29% vs. a year earlier while revenue climbed 8% to $23.6 billion, both slowing somewhat from the prior quarter. Q1 earnings are expected on May 14.
Tencent has a cup base that formed around the top of a prior consolidation. The official buy point is 70. Shares are just below the 50-day line. As with Alibaba stock, a decisive move above the 50-day line would offer an early entry, but earnings aren't far away.
TCEHY stock has climbed 18.55% 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 in a few weeks.
Qifu stock has an emerging consolidation that needs another week to be a cup base. The potential buy point is 48.94. On Friday, shares moved above the 50-day line, offering an early entry.
QFIN stock is up 11.5% in 2025 as of May 5.
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