Best Chinese Stocks for December 2025: AI, EVs and Chip Leaders in a Rebounding Market

Best Chinese Stocks to Buy Now (December 2025): Tech, EVs and AI Leaders in a Rebounding Market

China's market bounced hard in 2025, yet valuations remain below many global peers. That gap, plus policy tailwinds for AI, EVs and advanced manufacturing, is why these names are back on investor screens as of 5 December 2025.

Quick note: This is not personal investment advice. Markets swing, policies shift, and your situation is unique. Use this as a starting point for your own research.

1) December 2025 snapshot: recovery with caveats

• Indexes: CSI 300 ~4,580 (up ~17% YoY). Hang Seng up ~30% YTD, pacing for its best year since 2017. Asia ex-Japan P/B rose from ~1.8 to ~2.1, still at a discount to the U.S.
• Macro: IMF sees ~4.5-4.8% growth in 2025, easing toward ~4% in 2026. Services are expanding but cooling (Nov services PMI ~52.1).
• Property drag: Street now expects home prices to fall ~3.7% in 2025 and ~2.8% in 2026. Banks and developers remain pressured.
• Policy focus: Tech self-reliance (AI/semis), upgraded manufacturing, green energy/EVs, and consumption support. Talk of curbing ruinous price wars ("anti-involution").

Translation: this isn't a euphoric boom. It's a selective recovery fueled by low starting valuations, domestic flows, and targeted policy support.

IMF

2) How this list was built

We cross-checked recent "best Chinese stocks" lists from major research houses and broker roundups. The same leaders kept showing up: large-cap platforms with cash flow, profitable EV incumbents, AI hardware enablers, and steady consumption plays.

• Platform tech & AI: Alibaba, Tencent, Baidu, JD.com, NetEase, Bilibili
• EV & smart mobility: BYD, XPeng, Li Auto, NIO, plus Xiaomi's EV push
• Chips & advanced manufacturing: SMIC, Moore Threads; Baidu's Kunlunxin on the chips angle
• Domestic consumption: Yum China; services/e-commerce platforms

3) Platform tech and AI

Alibaba (BABA, 9988 HK)

• Why now: Leverage to consumption, cloud, and AI. Still trades below U.S. peers despite a strong 2025.
• Numbers: FY2025 March quarter adjusted net income up ~22% YoY; cloud +18% with multiple quarters of triple-digit AI product growth. Buybacks and restructuring continue.
• Risks: Ongoing regulation, short-video commerce competition, consumer softness.

Tencent (0700 HK, TCEHY)

• Why now: WeChat, gaming, fintech, and advertising form a durable moat. AI improves ad performance and game development.
• Numbers: Q2 2025 revenue +15% YoY, gross profit +22%, net profit +16%. Net cash ~RMB 74.6B; steady buybacks.
• Risks: Content/gaming approvals; ad cycles.

Baidu (9888 HK, BIDU)

• Why now: Search + AI cloud + domestic AI chips (Kunlunxin). Direct exposure to China's AI stack.
• Numbers: Q2 2025 net profit up ~30% YoY; AI Cloud +34%. Kunlunxin funding round valued ~RMB 21B; prepping HK IPO.
• Risks: Competitive ad market; chip supply and policy constraints create execution risk.

JD.com (JD, 9618 HK) & JD Logistics (2618 HK)

• Why now: JD.com pairs e-commerce with in-house logistics. JD Logistics gives focused exposure to cross-border warehousing and exports.
• Numbers: JD core retail operating profit up ~38% in 2025. JD Logistics revenue +~17% YoY in Q2 2025; expanding in the U.S., Europe, and Asia.
• Risks: Price competition; cyclical margins in logistics.

NetEase (NTES) & Bilibili (BILI)

• NetEase: Up ~50% YTD; cash-rich gaming IP with growing international reach. Analysts still see room for upside.
• Bilibili: Youth video/anime platform; up ~33% YTD. Higher beta with content regulation exposure, but meaningful ad upside if sentiment holds.

4) EV and smart mobility

BYD (1211 HK, BYDDY)

• Why now: Profitable scale leader across batteries, buses, trucks, and passenger EVs. Strong traction in China and Europe.
• Numbers: 5-year revenue CAGR ~11%; net margin ~5.2%; ROE ~25%. Valuation isn't cheap, but growth supports it.
• Risks: Price wars, export frictions, FX and tariffs.

XPeng (XPEV, 9868 HK)

• Why now: High-growth, higher-risk. Leading 1-year price return among main China EV names; strong overseas momentum.
• Numbers: 3-year revenue CAGR ~48%; Street sees ~91% 2025 revenue growth. Nov deliveries ~36,728 (+19% YoY).
• Risks: Negative margins, higher leverage, volatile technicals.

Li Auto (LI) & NIO (NIO)

• Li Auto: Stock down ~22% YTD near 52-week lows; fundamentals remain solid with mid-teens EPS/revenue CAGRs. Oversold technicals; recall headlines add noise.
• NIO: Record Sept deliveries ~34,749 (+64% YoY). High upside in targets, but margins and leverage make it a speculative turnaround.

Xiaomi (1810 HK)

• Why now: EV optionality without pure-play EV risk. Diversified across smartphones, IoT, and autos.
• Numbers: Q2 2025 record adjusted net profit (+75% YoY). Smart EV revenue >RMB 20B. Global smartphone share ~14.7%. EV breakeven targeted by H2 2025; Europe entry planned by 2027.

5) AI chips and advanced manufacturing

Moore Threads (STAR Market)

• Why now: First pure-play GPU listing in China. IPO day pop ~425% raised ~RMB 8B; a clear signal of domestic capital support for AI hardware.
• Reality check: Still loss-making; on the U.S. Entity List. Expect high volatility and policy risk.

SMIC (0981 HK)

• Why now: Core foundry for China's mature-node build-out. Utilization strong on domestic demand.
• Numbers: Q3 2025 revenue ~$2.38B (+9.7% YoY), profit +~29%, utilization ~96%. Guidance: steady near-term growth and 18-20% gross margin.
• Tailwind: Policy is expanding mature-node capacity; SMIC is a central beneficiary.

6) Domestic consumption winners

Yum China (YUMC)

• Why now: KFC, Pizza Hut and more-direct exposure to food-service penetration in lower-tier cities.
• Set-up: Potential boost from consumption incentives (travel, autos, appliance upgrades often correlate with eating-out trends). U.S. listing, strong governance, solid cash generation.

Meituan & Pinduoduo (PDD) - honorable mentions

• Why they're watched: Innovation, domestic demand, and better valuations after a long reset.
• Risk: Policy sensitivity and fierce competition require stronger risk controls.

7) High-momentum small/mid-caps: be selective

• Some U.S.-listed China names posted eye-popping 12-month returns (e.g., lidar, data centers, brokerages, online recruitment).
• These are volatile, theme-dependent, and under-researched. If used, keep them as small "satellites," not core holdings.

8) Prefer not to stock-pick? Consider ETFs

• MCHI: Broad, diversified China exposure across sectors.
• FXI: Large-cap tilt-easier way to hold Alibaba, BYD, Tencent, JD.com with less single-name risk.

9) A simple China strategy for 2026

• Core: Broad China ETFs (MCHI/FXI) plus large-cap platforms with cash flow (Tencent, Alibaba, Baidu, JD.com).
• Growth satellites: EVs (BYD as the steady engine; XPeng/Li Auto/NIO as higher-risk growth), AI & chips (SMIC; Moore Threads for aggressive profiles), and consumption (Yum China, Xiaomi; Meituan/PDD if you accept policy risk).
• Avoid/limit: Heavily leveraged developers and banks tied to housing; thinly traded ADRs; micro-caps with extreme 1-year moves.
• Risk rules: Cap position sizes in single-name EV/AI plays. Diversify across A-shares, HK, and ADRs. Expect headlines around trade and export controls.

10) Bottom line

The opportunity set is clearer than it was a year ago. Platform tech and AI (Alibaba, Tencent, Baidu, JD.com), EVs (BYD, XPeng, Li Auto, NIO, Xiaomi), AI hardware and foundries (SMIC, Moore Threads), and steady consumption (Yum China) sit in the slipstream of 2025 policy priorities and improved sentiment.

Pick quality balance sheets. Favor cash flow and strategic alignment over hype. Be patient and let position sizing do the heavy lifting.

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