CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
For institutions
Log in Open account
United Kingdom
Beijing to 'play nice' on trade

Beyond the Magnificent 7: Finding the next big tech plays in China

Equities
Charu Chanana
Charu Chanana

Chief Investment Strategist

Key points:

  • China’s alternatives to US tech: With Beijing supporting key tech industries and market valuations more attractive than U.S. counterparts, China’s tech plays could be an alternative for investors seeking long-term growth beyond the dominant U.S. giants.
  • Key sectors: Easing regulatory stance on tech innovation offers diverse opportunities beyond the Magnificent 7, particularly in AI, semiconductors, cybersecurity, and EVs.
  • E-commerce and consumer tech growth: Despite economic challenges, China's e-commerce giants like JD.com, Pinduoduo, and Meituan continue to dominate, with innovations in live-streaming and social commerce driving growth.

While the Magnificent 7 have dominated U.S. markets, China’s tech landscape offers compelling alternatives, particularly as Beijing increases support for the sector. With regulatory pressures easing and AI, cloud computing, and semiconductors driving growth, investors are looking at China’s version of big tech and beyond.

Here are some key tech themes and companies to watch in China:

Semiconductors: China’s Answer to Nvidia and AMD

China’s push for semiconductor self-sufficiency has created opportunities in domestic chipmakers as U.S. restrictions on AI chips accelerate the need for local alternatives.

  • SMIC (0981.HK) – China’s largest contract chipmaker, crucial to the country’s semiconductor ambitions.
  • Hua Hong Semiconductor (1347.HK) – A rising player in foundry production, supporting China’s domestic chip needs.

AI and Cloud Computing: China’s Answer to Nvidia and Microsoft

China is racing to develop its own AI ecosystem, with companies investing heavily in large language models (LLMs), AI chips, and cloud infrastructure.

  • Alibaba (BABA) – China’s leader in cloud computing and AI, with Alibaba Cloud playing a central role in the country’s tech development.
  • Baidu (BIDU) – A key player in AI, with its Ernie AI model positioned as China’s answer to ChatGPT.
  • Tencent (0700.HK) – With strengths in cloud computing and AI applications, Tencent is well-positioned in gaming, social media, and enterprise services.

E-Commerce and Consumer Tech: China’s Answer to Amazon

Despite economic uncertainty, China’s e-commerce giants remain dominant, while new retail innovations like live-streaming and social commerce are driving growth.

  • JD.com (JD) – A major e-commerce player with a logistics edge, positioning itself as China’s Amazon.
  • Pinduoduo (PDD) – A rapidly growing discount e-commerce platform, now expanding globally with Temu.
  • Meituan (3690.HK) – A leader in food delivery, travel, and local services, tapping into China’s consumer spending trends.

EVs and Smart Cars: China’s Answer to Tesla

China leads the global EV market, with domestic brands taking market share from Tesla. Companies involved in autonomous driving and battery innovation are also gaining traction.

  • BYD (1211.HK) – The world’s largest EV manufacturer, expanding aggressively in Europe and Southeast Asia.
  • XPeng (XPEV) – A rising EV player with a strong focus on autonomous driving technology.
  • Li Auto (LI) – Leading in extended-range EVs, with a focus on premium models.

Smart Devices: China's Answer to Apple and Samsung

  • Xiaomi (1810.HK) – Consumer electronics & expanding into EVs.
  • Huawei – AI-driven smartphones & 6G technology.

Cybersecurity and Software: China’s Answer to CrowdStrike and Palo Alto Networks

China is investing in cybersecurity as a strategic priority, with domestic firms benefiting from the shift away from foreign tech providers.

  • Qi An Xin (688561.SS) – China’s leading cybersecurity firm, benefiting from growing demand for data protection.
  • Venustech (002439.SZ) – A rising cybersecurity player in China, focusing on cloud and network security.

This content is marketing material. 

None of the information provided on this website constitutes an offer, solicitation, or endorsement to buy or sell any financial instrument, nor is it financial, investment, or trading advice. Saxo Capital Market Ltd. (SCML) provides execution-only services, with all trades and investments based on self-directed decisions. Analysis, research, and educational content is for informational purposes only and should not be considered advice or a recommendation.

SCML content may reflect the personal views of the author, which are subject to change without notice. Mentions of specific financial products are for illustrative purposes only and may serve to clarify financial literacy topics. Content classified as investment research is marketing material and does not meet legal requirements for independent research.

SCML partners with companies that provide compensation for promotional activities conducted on its platform. Some partners also pay retrocessions contingent on clients investing in products from those partners. 

While SCML receives compensation from these partnerships, all educational and research content remains focused on providing information to clients.

Before making any investment decisions, you should assess your own financial situation, needs, and objectives, and consider seeking independent professional advice. SCML does not guarantee the accuracy or completeness of any information provided and assumes no liability for any errors, omissions, losses, or damages resulting from the use of this information.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

Saxo
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

United Kingdom
United Kingdom
Products & pricing
Platforms
Accounts & service
General
Other
Legal

Warning

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992