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As 2026 unfolds, China’s AI and technology sectors continue to attract investor interest amid an evolving economic landscape marked by structural reforms, export strength, and cautious domestic demand. This article highlights three Chinese public stocks: Kuaishou Technology, Trip.com, and Futu Holdings, uniquely positioned to thrive through AI monetization, industrial recovery, and expanding digital engagement.
The International Monetary Fund projects China's 2025 GDP growth slightly above 5%, driven by robust export activity supported by a weak yuan and relatively low inflation compared to trade partners. Government fiscal stimulus partially offsets subdued domestic demand and a persistent real estate sector downturn, positioning China as a major contributor—about 30%—to global economic growth.
While market volatility remains, Wall Street institutions such as Goldman Sachs and Morgan Stanley emphasize Chinese industrial and tech sectors benefiting from export resilience and AI innovation. The Hang Seng China Enterprises index trades at a attractive 10.7x forward earnings multiple relative to 22x for the S&P 500, underscoring valuation appeal.
Goldman Sachs targets a 9% upside for the CSI 300 index, anticipating a 14% earnings growth acceleration fueled by AI deployment, supportive policies, and liquidity abundance. Meanwhile, yuan appreciation prospects have improved as the People’s Bank of China signals stronger currency policies, bolstering investor confidence.
Morgan Stanley highlights gains in construction equipment and industrial components driven by stable export orders and recovering domestic demand. Electrification and grid infrastructure companies such as China XD Electric and TBEA have reported strong share performance, reflecting optimism for sustained sector outperformance amid intensifying global AI competition.
China’s AI landscape is evolving rapidly, with investor preferences shifting towards companies offering monetizable AI "killer apps" that embed AI functionality across platforms, ecosystems, and user services. Industry leaders like Kuaishou Technology and Alibaba Health are advancing user-facing AI applications—boosting demand in internet services, healthcare, and e-commerce sectors.
The government’s AI prioritization since last year has facilitated easing of regulatory constraints and IPO market reopening for AI-focused firms, exemplified by the strong performances of recent listings such as Minimax Group and Knowledge Atlas on the Hong Kong Stock Exchange.
Despite promising sectors, risks such as weak domestic consumption, deflationary pressures, potential tax policy changes, and global financial volatility temper enthusiasm. For instance, the Hang Seng Tech Index remains 20% below previous peaks due to concerns around technology sector valuations and regulatory uncertainties.
In this complex environment, selective stock picking is critical. Firms with robust earnings momentum, scalable AI integration, and disciplined capital management present compelling investment cases. Previously highlighted growth names include Baidu, PDD Holdings, and NetEase, alongside the trio detailed below.
Company Overview: Kuaishou Technology operates one of China’s most popular short-video and livestreaming platforms, supporting live commerce, marketing, entertainment, and gaming. Its extensive ecosystem includes products like Kuaishou Express and AcFun.
AI Innovations: Prominent AI tools include Kling and its advanced version Kling AI 2.5 Turbo, leading global benchmarks in video generation AI and reducing costs by nearly 30%. OneRec, its generative recommendation system, enhances ad targeting and e-commerce personalization, contributing to revenue growth.
User and Financial Metrics: As of Q3 2025, Kuaishou’s flagship app recorded 416 million daily active users (DAU) and 731 million monthly active users (MAU), with average daily engagement at 134 minutes. Quarterly revenue rose 14.2% year-over-year to 35.6 billion yuan ($5.1 billion), driven by AI-enhanced online marketing and e-commerce expansions.
Operating efficiency gains include stable marketing expenses as a percentage of revenue, a reduction in administrative costs, and a near doubling of operating profit margins to 14.9%. Despite tax pressure limiting net profit gains, operating cash flow remains robust at 7.7 billion yuan ($1.1 billion) for the quarter.
Valuation: Trading at approximately 13x forward earnings on the Hong Kong Stock Exchange, Kuaishou offers a favorable valuation amid sector-wide earnings forecast downgrades, maintaining growth momentum backed by AI monetization prospects.
Company Profile: Trip.com is a dominant online travel aggregator in Asia-Pacific, operating brands such as Ctrip, Qunar, and Skyscanner. Its offerings span flight, hotel, train bookings, and travel packages, supported by a vast partner network exceeding 65,000 worldwide.
Market Trends: The online travel market is expanding rapidly, with digital bookings surpassing 70% in key regions. Trip.com benefits from this trend alongside post-pandemic travel rebound, especially in domestic and international bookings.
Financial Highlights: Q3 2025 revenue rose 15.5% year-over-year to 18.4 billion yuan ($2.6 billion), fueled by rapid growth in overseas bookings (+60%) and domestic travel (+100%). High gross margins (81.7%) reflect efficient operations despite elevated marketing and product development expenses for growth acceleration.
Dividend payments and capital return policies, including share buybacks, bolster investor confidence. While facing intense competition from global travel aggregators, Trip.com’s scale, technology, and local market knowledge underpin its growth potential as an Asia-Pacific travel leader.
Company Overview: Futu Holdings operates digital brokerage platforms Futubull and Moomoo, integrating social networking with trading and wealth management services. It caters to retail investors across key Asian and global markets including Hong Kong, Singapore, the U.S., and Australia.
Growth and Financials: In Q3 2025, Futu’s revenue soared 86.3% year-over-year to HK$6.4 billion ($0.82 billion), driven by doubled trading volumes and expanding funded accounts. Active client accounts grew over 33%, while client assets nearly doubled to over HK$1.2 trillion.
Operating profit more than doubled to HK$3.9 billion, with a margin increase to 61%, reflecting strong efficiencies despite rising R&D and marketing expenditures focused on AI and blockchain innovation.
Valuation and Outlook: Trading near peer multiples yet with superior margin expansion and asset growth, Futu is well positioned to capture long-term structural growth in Asian retail investing and fintech innovation.
China’s evolving market landscape demands a selective approach centered on technology, AI integration, and export-led recovery. Kuaishou Technology, Trip.com, and Futu Holdings exemplify companies with sound fundamentals and scalable AI-driven growth poised to benefit from China's AI boom and industrial rebound.
Investors should focus on firms demonstrating robust earnings momentum, clear capital discipline, and innovative AI monetization strategies to navigate China’s volatile yet opportunity-rich environment.
For data-driven investment advice and portfolio insights tailored to global and Chinese growth trends, visit 8FIGURES, the AI investment advisor helping investors navigate dynamic markets confidently.
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