Introduction
China’s equity market offers a diverse array of opportunities for U.S. investors, spanning technology, consumer discretionary, electric vehicles, and financial services. From industry leaders with robust earnings to high‑growth innovators and strategic ETFs, this guide highlights the top Chinese equities and exchange‑traded funds to consider for portfolio diversification and potential growth.
The Chinese stock market is a dynamic and rapidly evolving landscape, with a mix of established giants and emerging players. As we look ahead to 2025, several key trends are shaping the investment landscape, including the rise of technology companies, the growth of the electric vehicle sector, and the increasing importance of consumer discretionary spending.
Investing in Chinese Stocks: OTC Market
The OTC market allows U.S. investors to access Chinese stocks that may not be listed on U.S. exchanges. This provides an opportunity to invest in companies like Tencent Holdings and Alibaba Group, which are key players in the Chinese market.
However, investing in OTC stocks comes with its own set of challenges, including lower liquidity and higher volatility. Investors should conduct thorough research and consider the risks before diving into the OTC market.
The OTC market is a decentralized market where securities are traded directly between parties without a centralized exchange. This market is particularly relevant for U.S. investors looking to access Chinese stocks that may not be listed on U.S. exchanges.
Top Chinese Stocks for 2025
Alibaba Group Holding Ltd (NYSE: BABA) Loading
price...
Alibaba is an investment holding company that provides technology infrastructure and marketing platforms through nine segments, including China Commerce Retail (domestic e‑commerce), China Commerce Wholesale (1688.com), Cloud Intelligence (Alibaba Cloud), and Digital Media & Entertainment, enabling merchants and consumers to transact and access digital services at scale
Alibaba Group reported first‑quarter fiscal 2025 revenue of $33.4 billion, a 4 % year‑over‑year increase, driven by a rebound in cloud and international e‑commerce segments. Despite near‑term advertising headwinds, analysts forecast revenue growth to return to double digits by fiscal year‑end March 2025, supported by a record share buyback program and strategic investments in AI infrastructure
Tencent Holdings Ltd (OTC: TCEHY) Loading
price...
Tencent is an investment holding company whose Value‑Added Services segment offers online games, video account live broadcasts, paid video memberships, and social networking; it also generates revenue from online advertising, FinTech (WeChat Pay), and enterprise business services
Tencent Holdings plans to boost capital expenditure to the “low teens” percentage of revenue in 2025, accelerating its AI and cloud initiatives after $10.7 billion in capex in 2024. In Q1 2024, Tencent delivered 6 % revenue growth to ¥159.5 billion, beating consensus estimates on strong advertising sales and business services
Baidu, Inc. (NASDAQ: BIDU) Loading
price...
Baidu operates as China’s leading internet search provider, with two primary segments: Baidu Core (search, AI cloud, autonomous driving services) and iQIYI (subscription‑based video streaming), leveraging its AI expertise to expand into cloud computing and intelligent driving solutions
Baidu’s Q1 2024 revenue of ¥31.7 billion, a 10 % year‑over‑year increase, was driven by strong demand for its AI cloud services and autonomous driving solutions.
is set to launch its next‑generation AI model, Ernie 5, in H2 2025, featuring multimodal capabilities that will process text, video, images, and audio, positioning Baidu at the forefront of China’s AI race.
JD.com, Inc. (NASDAQ: JD) Loading
price...
JD.com is a vertically integrated e‑commerce company comprising JD Retail (online direct sales of electronics, home appliances, FMCG, and fashion), JD Logistics (in‑house and third‑party logistics), JD Health (online healthcare), and other innovation initiatives, emphasizing fast delivery and customer trust.
JD.com topped Q4 2024 revenue estimates with ¥346.99 billion (≈$47.9 billion), a 13.4 % increase year‑over‑year, thanks to strong electronics and home appliance sales complemented by government trade‑in incentives.
BYD Company Limited (OTC: BYDDY) Loading
price...
BYD is a diversified manufacturer principally engaged in the design, manufacture, and sale of transportation equipment (electric vehicles, buses, and trucks), rechargeable batteries (including mobile phone components), and photovoltaic products, with operations spanning China, the U.S., and Europe
BYD Company expects Q1 2025 net profit to grow between 86 % and 118.9 % year‑over‑year, reflecting surging demand for its electric vehicles and energy storage solutions.
XPeng Inc. (NYSE: XPEV) Loading
price...
XPeng designs, develops, produces, and sells smart electric vehicles—such as the G6 and P7—incorporating assisted and autonomous driving features, and has bolstered its supply‑chain resilience through thorough tariff‑impact analyses.
XPeng anticipates delivering 91,000–93,000 vehicles in Q1 2025—over three times last year’s volume—and projects revenues between ¥15 billion and ¥15.7 billion, driven by its lower‑priced G6 and G9 SUVs and European market entry.
NIO Inc. (NYSE: NIO) Loading
price...
NIO is a holding company focused on the research, development, manufacture, and sale of premium smart electric vehicles (ES8, ES6, EC6, ET7), and invests in battery‑as‑a‑service and autonomous driving technologies to differentiate its offerings.
NIO delivered 42,094 vehicles in Q1 2025, up 40.1 % year‑over‑year, marking its strongest quarterly performance since its U.S. listing and underscoring robust demand for its premium and family‑oriented EV brands.
Contemporary Amperex Technology Co. Ltd. (CATL) (SHE: 300750)
CATL is a leading global manufacturer of lithium‑ion batteries for electric vehicles and energy storage systems, with a focus on R&D and innovation in battery technology, including lithium iron phosphate (LFP) and nickel manganese cobalt (NMC) batteries
CATL reported a 32.9 % year‑over‑year jump in Q1 2025 net profit to ¥14 billion, ending five consecutive quarters of revenue decline and reinforcing its leadership in EV battery production.
Ping An Insurance (Group) Co. of China Ltd. (NYSE: PNGAY) Loading
price...
Ping An provides a broad spectrum of insurance products—life, health, property & casualty—through five segments, and has expanded into banking, asset management, and fintech via its integrated ecosystem to capture wealth‑management flow
Ping posted a 48 % rise in full‑year 2024 net profit to ¥126.607 billion, driven by strong investment returns and growth in its life and health insurance segment.
Xiaomi Corporation ADR (OTC: XIACY) Loading
price...
Xiaomi is an investment holding company developing and selling smartphones, IoT devices, smart‑home products, and internet services, while also expanding into electric vehicles under its “HyperOS” connected ecosystem
rades around $26.49 per share, offering U.S. investors exposure to a leading consumer electronics and IoT company that also plans significant expansion in electric vehicles
ETFs for China Exposure
iShares China Large‑Cap ETF (NYSE Arca: FXI) Loading
price...
FXI provides targeted exposure to 50 of the largest China‑listed companies trading in Hong Kong. Its net asset value was $32.52 with a year‑to‑date return of 6.82 % as of mid‑April 2025, making it a core holding for large‑cap China exposure.
iShares MSCI China ETF (NASDAQ: MCHI) Loading
price...
MCHI tracks a broader MSCI China Index, spanning large‑ and mid‑cap stocks. As of April 21, 2025, MCHI traded at $49.39, offering diversified exposure across sectors including Technology, Consumer Discretionary, and Financials.
Conclusión
China’s market offers a blend of mature giants and high‑growth disruptors across sectors. Leading names like Alibaba, Tencent, and BYD combine scale with innovation, while specialists such as CATL and XPeng capitalize on surging EV and AI trends. Financials and consumer plays—Ping An and Xiaomi—provide defensive ballast, and ETFs like FXI and MCHI round out a diversified approach for U.S. investors seeking China’s growth opportunities.