China stocks back with a bang: Market Movers

Chinese stocks have gained ground in recent months, powered by slightly improved activity in the world’s second largest economy – and, guess what? Lower interest rates. The CSI 300 index is up roughly 15% from its April low following Trump’s tariff announcements on Liberation Day.

Video Transcript

00:00 Speaker A

Okay, like many market watchers these days, we are asking a big question today. Is China back? Chinese stocks have gained ground in recent months, powered by slightly improved activity in the world's second largest economy, and guess what? Lower interest rates. The CSI 300 index is up roughly 15% from its April low following Trump's tariff announcement on Liberation Day, and trading volume in China is now up. One sector that's driving the rally, Chinese tech, Alibaba, 10 cent, and just this morning, jd.com, all posted strong results. jd.com is sometimes dubbed the Chinese Amazon, and as you can see here, its US-listed shares are up by more than 1% in pre-market after it posted revenue of nearly $50 billion for the quarter. Weibo, Chinese social media platform also beat expectations this morning, and the stock jumped on the news. As you can see here, it's up more than 1.5%. Finally, Taiwan's Foxconn, the world's largest contract electronics maker and manufacturer of the iPhone also topped forecasts, posting high AI demand and a 27% increase in profits. Now, there's a lot to say about the risks surrounding China tech, especially as Washington and Beijing continue to negotiate tariffs and a new trade framework, while they keep jostling for dominance in chips, and Chinese tech companies are also facing some significant challenges. Just this morning, the Financial Times reported that Open AI rival Deep Seek will delay the release of its new AI model after it failed to pull it off by using Chinese chips made by Huawei. So, for now, on this front, the US still seems to be in the lead.

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