Analysis of Driving Factors and Sustainability of the Collective Rise in Chinese Concept Stocks

Based on an analysis of current market data and the latest information, I will provide an in-depth analysis of the driving factors and sustainability of the collective rise in Chinese concept stocks for you:

From real-time data, Chinese concept stocks are indeed showing a general upward trend:

• Baidu (BIDU):
  Up 2.89%, leading Chinese concept stocks, current price $122.76 [0]
• Alibaba (BABA):
  Slightly down 0.09%, current price $149.16 [0]
• Bilibili (BILI):
  Up 0.86%, current price $24.60 [0]
• Weibo (WB):
  Up 0.15%, current price $10.20 [0]
• Pinduoduo (PDD):
  Down 3.73%, current price $104.95 [0]

: The Trump administration approved NVIDIA’s export of high-end H200 chips to China, which is a major policy shift [1]. This decision:

• Marks a major adjustment in U.S. technology policy
• Opens the channel for Chinese tech enterprises to obtain advanced AI chips
• Significantly enhances the investment attractiveness of Chinese tech stocks

As a key company in the AI field, Baidu’s stock price rose 2.89% directly benefiting from this. At the same time, Baidu is considering spinning off its Kunlunxin chip unit for an IPO, with a valuation of 13 billion yuan, further enhancing market confidence in its AI business [0].

completed major strategic adjustments in 2025:

• From an e-commerce giant to an AI and cloud service platform
• Cloud computing and AI businesses have made substantial progress
• Rapid global application of the Qwen large model [0]

’s AI strategy has also been recognized by the market:

• Continuous advancement of the Apollo autonomous driving project
• Chip business considering spin-off for IPO to unlock value

After several years of adjustment, the valuation of Chinese concept stocks is at a relatively low historical level:

• Baidu’s P/E ratio is only 11.12 times, lower than the industry average
• Alibaba’s P/E ratio is 20.35 times, relatively reasonable
• Although Bilibili’s P/E ratio is high (94.62 times), it reflects its growth potential

1. Continuous improvement of the policy environment
   : The loosening of U.S. chip export restrictions has brought positive signals to Sino-U.S. tech relations, which is beneficial to the long-term development of Chinese concept stocks [1]
2. AI-driven fundamental growth
   : Chinese tech companies’ investment in AI is being converted into actual revenue growth; businesses like Alibaba Cloud and Baidu Intelligent Cloud have strong growth [0]
3. Obvious valuation advantage
   : Compared with U.S. tech giants, Chinese concept stocks still have a significant valuation discount, providing investors with a good risk-return ratio
4. Capital inflow expectations
   : Institutions like Sparrow Investment Management expect significant capital inflows into China’s stock market in the next few years [2]

1. Geopolitical uncertainty
   : Sino-U.S. relations still have the possibility of fluctuations, and policy risks still exist
2. Economic fundamental challenges
   : China’s economic recovery still faces structural challenges, with relatively slow growth in consumption and investment
3. Increased industry competition
   : Competition in the AI and cloud computing fields is becoming increasingly fierce, and profit pressure is increasing
4. Regulatory policy risks
   : The regulatory environment for the tech industry still has uncertainties

Based on the current analysis, the uptrend of Chinese concept stocks has certain sustainability, but the following points need to be noted:

: Driven by positive AI chip policy news, Chinese concept stocks still have room to rise in the next 1-2 months, especially AI and cloud computing-related companies

: Need to pay attention to the direction of Sino-U.S. relations in 2026 and the improvement of China’s economic fundamentals

:

• Focus on leading companies in the AI and cloud computing fields (Baidu, Alibaba)
• Pay attention to enterprises with core technical advantages and good cash flow
• Pay attention to position control and diversify investment risks

This round of rise in Chinese concept stocks is mainly driven by three factors:

, , and . Supported by the improvement of the policy environment and the growth of AI businesses, the uptrend has certain sustainability, but investors still need to closely monitor geopolitical risks and macroeconomic changes.

It is recommended that investors adopt a

strategy, focusing on high-growth track quality enterprises such as AI and cloud computing, while maintaining appropriate position management and risk control.

---

:
[0] Jinling AI Data - Real-time stock quotes and market data
[1] Yahoo Finance - “Trump’s approval of H200 is seen as a shift in U.S. national security stance; China may seek greater concessions by leveraging this”
[2] Yahoo Finance - “Sparrow: Mainland stock market valuations are still attractive; capital inflows into China’s stock market will increase significantly in the next few years”
[3] Bloomberg - “Chinese Economy Shows Strength With EVs, Rare Earths, Robots”
[4] Benzinga - “Baidu Mulling IPO of Kunlunxin Chip Unit”
[5] Motley Fool - “Alibaba in 2025: Three Shifts That Investors Should Know Before Entering 2026”