Fynsa
While Wall Street continues to process the impact of more aggressive trade policies and a weakened dollar, on the other side of the world, a group of Chinese technology companies is taking off. These are the BATX: Baidu, Alibaba, Tencent and Xiaomi, dubbed by financial analysts as the Eastern version of America's "Magnificent 7".
So far in 2025, Hong Kong's Hang Seng is up more than 15%, driven by the rally of these Asian giants. Xiaomi y Alibaba have been the stars of the year with rises of 55% and 41%, respectively. TencentTencent, on the other hand, advanced by a solid 24%, while Baidu The secret? State support, fiscal stimulus and a weaker dollar that has made stocks in Asia more attractive.
In contrast, the Nasdaq stars face a storm. Apple falls more than 21%, Tesla about 11%, while Alphabet and Amazon also fall back. Only Meta, Microsoft and Nvidia show signs of life, albeit with rather more discrete performances than their Chinese peers.
The appetite for risk has led global investors to look East, in search of the returns that the "Magnificent 7" do not currently guarantee. Even so, the market has not yet fully let go of the tech US tech companies, considering their long-term competitive advantages, from innovation to global scale.
Is this a rotation of technological power or just a temporary respite? For now, the BATXs ride firm, and the spotlight is on them.
Fynsa
