Zacks Investment Ideas feature highlights Alibaba, JD.com, Baidu, KWEB and Apple

For Immediate ReleaseChicago, IL – February 14, 2025 – Today, Zacks Investment Ideas feature highlights Alibaba BABA, JD.com JD, Baidu BIDU, the Kran CSI China Internet ETF KWEB and Apple AAPL.Ignore the Headlines, Buy Chinese StocksShould You Invest in China?It’s no secret on Wall Street that the Chinese stock market has been frustrating for investors, to say the least. The CSI 300, the leading Chinese capitalization-weighted index, last printed fresh all-time highs precisely four years ago. Chinese equities have suffered for various reasons, including China’s population decline, sky-high youth unemployment, a real estate bubble, and government overstepping and regulation concerns.As if all that wasn’t enough, newly re-elected President Donald Trump has wasted no time hitting Chinese imports with hefty tariffs. Meanwhile, the Chinese government has retaliated, spreading investor concerns about an all-out trade war.Despite the mounting concerns, you may be surprised when I tell you that I am very bullish on Chinese equities. Today, I will discuss the top five reasons I am bullish on China:Chinese Equities Resilient Despite Tariff ThreatsI always teach investors not to observe news in a vacuum and, instead, monitor the price action versus the news. In other words, scary headlines can be a bullish omen if price is resilient in the wake of them. This scenario is exactly what is playing out with Chinese equities and tariffs. For instance, despite the back-and-forth tariff rhetoric between the US and China, the iShares China Large Cap ETF is up nearly 5% for the week and breaking out to multi-month highs – a sign of resilience.In addition, investors should remember that during Trump’s first term, tariffs were used as a negotiating tactic more than anything else.China: Contrarian BetThe best investments usually go against the crowd. David Tepper, one of the greatest contrarian investors in history, has several Chinese stocks in his portfolio, including Alibaba, JD.com, Baidu and the Kran CSI China Internet ETF. Moreover, despite the recent uptrend in Chinese stocks, FXI’s short-interest is at multi-year highs, which could provide continued fuel for the fire.Chinese Government Wants to Stimulate EconomyLiquidity, more than anything else, drives bull markets. Recently, the People’s Bank of China (PBOC) implemented several stimulatory measures, including easing lending restrictions, cutting interest rates, and providing funds to the fledgling real estate sector.Chinese Stocks Have Dirt Cheap ValuationsMost Chinese stocks have generationally low valuations. For instance, BABA, China’s most prominent tech stock, has a P/E Ratio of 10x, one-third of its valuation back in 2020. In addition, earnings growth is accelerating again – a lethally bullish combo.Chinese AI Technology Catching Up to USChina’s DeepSeek AI model is a game-changer for the US/China AI race. Though several analysts have debunked claims that DeepSeek was able to produce a ChatGPT-like large language model at a fraction of the cost, the success of the AI model suggests that China has caught up to the US in the cutthroat AI race, or at the very least, is not far behind. Even Apple, America’s most-recognized tech juggernaut, has partnered with Alibaba to develop AI features for its iPhone in China.Bottom LineDespite concerns surrounding China’s economy, a confluence of factors suggests a compelling bullish case for Chinese stocks. Resilient price action, contrarian sentiment, government stimulus, attractive valuations, and rapid AI advancements create immense growth potential.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Baidu, Inc. (BIDU): Free Stock Analysis Report JD.com, Inc. (JD): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report KraneShares CSI China Internet ETF (KWEB): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks