BNP Paribas Wealth Management The rise of the Terrific Ten Chinese tech stocks
Oct 7, 2025
Uncover the rollercoaster journey of Chinese tech stocks, revealing a stunning 45% year-to-date gain. Explore the impact of robust domestic investment and the potential for continued momentum. Delve into China's advancements in AI and large language models, contrasting their appeal with U.S. giants. Discover the valuation gap between Hang Seng Tech and U.S. peers, alongside China's leadership in EVs and robotics. Finally, get insights on why it's not too late to invest in these emerging opportunities.
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Volatile Past, Strong Recent Rebound
- Chinese tech stocks ran up before 2021 and then collapsed far more than US tech, falling about 73% from peak to trough.
- The Hang Seng Technology Index has since rebounded strongly, rising 91% from mid-2024 lows and 45% year-to-date in 2025.
Better Performance At Lower Valuations
- Chinese tech has outperformed US mega-cap tech year-to-date, with Hang Seng Tech up 45% versus NASDAQ100's 16% in dollars.
- Valuations are still cheaper: Hang Seng Tech trades near 21x forward PE versus well over 30x for the Magnificent Seven.
Follow Domestic Flows Into Hong Kong Stocks
- Consider that domestic Chinese investors are showing strong interest via large southbound flows into Hong Kong-listed tech names.
- Use ETFs or funds tracking Chinese tech or the Hang Seng Technology Index to gain exposure if you want to invest now.