China’s top tech firms, such as Alibaba and Tencent, are surpassing their US counterparts, driven by DeepSeek’s impact and strong government support. In 2025, Chinese tech stocks have surged over 40%, propelled by advancements in AI and favorable policies. Societe Generale SA identifies these opportunities, highlighting a portfolio of seven top Chinese tech companies dubbed the ‘7 titans,’ which have seen significant growth.
On the other hand, the US ‘Magnificent Seven,’ comprising tech giants like Alphabet, Amazon, and Apple, have seen a slump of about 10%, affecting the Nasdaq 100 Index. This decline has been exacerbated after the emergence of DeepSeek, which caught Wall Street off guard. The unexpected growth of China’s tech industry can be attributed to government backing, increased profits, and AI as a long-term growth driver.
Recent developments have further boosted China’s tech rally, with Beijing announcing plans to support the sector and companies like Alibaba unveiling new AI innovations. As a result, the Hang Seng China Enterprises Index, which includes most of the highlighted Chinese stocks, surged more than 6% in a week. Despite the rapid growth, Societe Generale analysts argue that the ‘7 titans’ are still attractively priced, trading at 18 times forward earnings, over 40% cheaper than their US counterparts.
Overall, China’s tech industry is outpacing the US, driven by innovative technologies, government support, and favorable market conditions. The surge in Chinese tech stocks signals a shift in capital from the US to China, as investors recognize the growth potential and opportunities in the Chinese tech sector.
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