Option chain shows key data for Tencent Holdings's stock options at various strike prices and expiration dates. Traders use this information to analyze potential trades and assess market sentiment for Tencent Holdings.

Tencent Holdings (OTC:TCEHY) Stock, Option Chain

Tencent Holdings

TENCENT HOLDINGS ADR

Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app. WeChat is deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading companies including PDD, Kuaishou, and Epic Games.

Palantir, Carvana, Enovix, Grab, Tesla: Why These 5 Stocks Are On Investors' Radars Today

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BABA

ALIBABA GROUP HOLDING LTD by Alibaba Group Holding Limited

BABAF

BAIDF

JDCMF

TCEHY

XIACY

Chinese technology stocks advanced sharply on Friday, with Alibaba Group Holding Ltd. jumping 11.41% in Hong Kong trading, as investors responded to positive earnings guidance and anticipated monetary policy easing from Beijing.

Alibaba Spikes 11% In Hong Kong As Tencent, Xiaomi Lead Tech Rally On Earnings Optimism, Chinese Stimulus Hopes

Xi Jinping Photo by Gil Corzo on Shutterstock

BIDU

BYDDF

Chinese technology stocks extended gains Tuesday, as investors continued to react to President Xi Jinping&#39;s supportive stance toward the private sector demonstrated at Monday&#39;s high-level business symposium.

Xi Jinping&#39;s Supportive Appearance Sparks Chinese Tech Rally For Second Day: Alibaba, Xiaomi Surge Over 4% On Hong Kong Exchange

Baidu Inc ADR (BIDU)

Tech

On Monday, the Hong Kong-listed shares of Baidu took a nosedive by 7%, wiping out $2.4 billion from the company&#39;s market value.

Baidu&#39;s Market Value Plummets By $2.4 Billion Following CEO&#39;s Absence From Crucial Meeting Led By Chinese President Xi

TENCENT HLDGS UNSP/ADR by Tencent Holding Ltd.

Tencent Holdings Ltd

Chinese technology stocks advanced sharply on Friday, with Alibaba Group Holding Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#OTC">BABAF</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) jumping 11.41% in Hong Kong trading, as investors responded to positive earnings guidance and anticipated monetary policy easing from Beijing.
What Happened: Alibaba&#8217;s shares climbed to 134.70 HKD ($17.33) after CEO Eddie Wu announced expectations for the company&#8217;s International Commerce Unit to achieve profitability in the next fiscal year. 
The broader tech sector rally saw gains across major Chinese companies, with&nbsp;Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) rising 3.23% to 502.50 HKD ($64.66), Xiaomi Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACY#OTC">XIACY</a>) surging 4.88% to 51.55 HKD ($6.63), Baidu Inc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BAIDF#OTC">BAIDF</a>) adding 2.22% to 87.40 HKD ($11.25), and JD.com Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/JDCMF#OTC">JDCMF</a>) climbing 2.47% to 157.50 HKD ($20.27).
The surge comes as economists predict China&#8217;s central bank could cut its main policy rate following the annual parliamentary meeting in March. The People&#8217;s Bank of China (PBOC) maintained its loan prime rates Thursday, keeping the one-year rate at 3.1% and the five-year rate at 3.6%.
Bruce Pang, an adjunct associate professor at the Chinese University of Hong Kong Business School, according <a href="https://www.cnbc.com/2025/02/20/china-lpr-decision-february.html">to</a> CNBC, forecasts a 50-basis-point cut to the reserve requirement ratio next month, with the seven-day reverse repo rate potentially decreasing by 40 to 50 basis points this year.
See Also: <a href="https://www.benzinga.com/trading-ideas/movers/25/02/43872745/bitcoin-breaches-98k-ethereum-dogecoin-flat-as-sec-relaxes-crypto-enforcement-top-analysts-are-focused-on-this-level-for-a-potential-btc-upside">Bitcoin Breaches $98K, Ethereum, Dogecoin Flat As SEC Relaxes Crypto Enforcement: Top Analysts Are Focused On This Level For A Potential BTC Upside</a>
Why It Matters: The tech sector&#8217;s <a href="https://www.benzinga.com/markets/asia/25/02/43772586/xi-jinpings-supportive-business-stance-sparks-rally-for-second-day-alibaba-xiaomi-surge-over-4-on-hong-kong-exchange">momentum builds on recent optimism</a> following Chinese President Xi Jinping&#8216;s supportive stance toward private enterprise, demonstrated at a high-level business symposium that included prominent tech leaders. The gathering notably featured Alibaba founder Jack Ma&#8216;s first major public appearance with top leadership since Beijing&#8217;s 2020 regulatory crackdown.
However, investors are watching U.S.-China tensions, as recent tariffs imposed by President Donald Trump&#8216;s administration and the Federal Reserve&#8217;s cautious approach to rate cuts could influence PBOC&#8217;s monetary policy decisions. 
Read Next: 
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<li><a href="https://www.benzinga.com/25/02/43871609/trumps-federal-workforce-downsizing-plan-gets-green-light-from-judge-appeal-by-unions-dismissed">Trump&#8217;s Federal Workforce Downsizing Plan Gets Green Light From Judge, Appeal By Unions Dismissed</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Chinese technology stocks extended gains Tuesday, as investors continued to react to President Xi Jinping&#8216;s supportive stance toward the private sector demonstrated at Monday&#8217;s <a href="https://www.benzinga.com/markets/asia/25/02/43761193/xi-jinping-and-jack-mas-upcoming-meeting-a-clear-message-of-beijings-support-stock-soars-in-hong-kong-ahead-of-earnings">high-level business symposium</a>.
What Happened: By 11:59 a.m. Hong Kong time, the Hang Seng Index had surged 2.5% to 23,080, and mainland China&#8217;s CSI 300 Index had advanced 0.40% to 3,963. Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#OTC">BABAF</a>) surged 4.34% to HKD 127.50 ($16.39), while Xiaomi Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACY#OTC">XIACY</a>) climbed 5.87% to HKD 47.80 ($6.14).
Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) rose 3.42% to HKD 510.50 ($65.62), as JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) added 0.95% to HKD 158.60 ($158.60) and Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) gained 1.06% to HKD 90.80 ($11.67).
See Also: <a href="https://www.benzinga.com/trading-ideas/movers/25/02/43771666/bitcoin-dogecoin-weak-ethereum-rebounds-amid-muted-investor-sentiment-eth-moving-to-cold-wallets-at-shocking-pace-a-positive-for-price-action-in-the-long-term">Bitcoin, Dogecoin Weak, Ethereum Rebounds Amid Muted Investor Sentiment: ETH Moving To Cold Wallets At &#8216;Shocking Pace&#8217; A Positive For Price Action In The Long-Term</a>
Why It Matters: The market enthusiasm follows Xi&#8217;s Monday meeting with prominent business leaders, including Alibaba founder Jack Ma&#8216;s first major public appearance with top leadership since Beijing&#8217;s 2020 tech crackdown. 
The gathering, which included executives from Xiaomi, Huawei, and BYD Co. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>), comes amid escalating U.S.-China tensions, with recent retaliatory tariffs and export controls on critical minerals <a href="https://www.benzinga.com/markets/asia/25/02/43761193/xi-jinping-and-jack-mas-upcoming-meeting-a-clear-message-of-beijings-support-stock-soars-in-hong-kong-ahead-of-earnings">affecting both nations</a>.
Read Next: 
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<li><a href="https://www.benzinga.com/media/25/02/43771526/after-google-stands-firm-on-gulf-of-america-label-mexico-says-its-waiting-for-a-new-response-or-will-proceed-to-court">After Google Stands Firm On &#8216;Gulf of America&#8217; Label, Mexico Says It&#8217;s Waiting For A New Response Or &#8216;Will Proceed To Court&#8217;</a></li>
</ul>
Image Via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Xi Jinping's Supportive Appearance Sparks Chinese Tech Rally For Second Day: Alibaba, Xiaomi Surge Over 4% On Hong Kong Exchange

On Monday, the Hong Kong-listed shares of&nbsp;Baidu&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) took a nosedive by 7%, wiping out $2.4 billion from the company&#8217;s market value. This sharp decline came in the wake of the company founder&#8217;s noticeable absence from a pivotal meeting with President Xi Jinping.
What Happened: President Xi had called a meeting in Beijing with top Chinese business leaders, including&nbsp;Alibaba&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) founder Jack Ma and Huawei&#8217;s Ren Zhengfei. However, Reuters reported that Baidu&#8217;s founder, Robin Li, was not present at the meeting. <a href="https://www.benzinga.com/markets/asia/25/02/43761193/xi-jinping-and-jack-mas-upcoming-meeting-a-clear-message-of-beijings-support-stock-soars-in-hong-kong-ahead-of-earnings">The meeting with Xi</a> was perceived as a sign of the government&#8217;s backing for China&#8217;s tech sector amid years of regulatory scrutiny and uncertain U.S. relations.
Meanwhile, Baidu announced on Sunday, its plans to integrate both DeepSeek and its proprietary Ernie large language models (LLMs) into its search engine to provide a more diverse search experience following rival&nbsp;Tencent&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) declaration that they would integrate DeepSeek's AI model into WeChat search.
SEE ALSO: <a href="https://www.benzinga.com/markets/asia/25/02/43761193/xi-jinping-ad-jack-mas-upcoming-meeting-a-clear-message-of-beijings-support-stock-soars-in-hong-kong-ahead-of-earnings">Xi Jinping And Jack Ma&#8217;s Upcoming Meeting &#8216;A Clear Message&#8217; Of Beijing&#8217;s Support, Stock Soars In Hong Kong Ahead Of Earnings</a>
Why It Matters: Last week, Baidu&#8217;s shares surged nearly 12%, fueled by excitement over China&#8217;s advancements in AI and the earlier launch of DeepSeek R1. Seizing the moment, the company unveiled an upgraded version of its Ernie AI bot and revealed plans to open-source its AI models. The recent losses are largely attributed to profit-taking following the AI-driven rally. The company is also scheduled to release its fourth-quarter earnings on Feb. 18.
However, Li&#8217;s absence has led to speculation about Baidu&#8217;s waning influence in the market. The company has been struggling with declining ad revenue, while its cloud division has experienced limited growth despite expanding its AI offerings over the past two years.
Baidu&#8217;s recent stock market performance comes amid a broader context of the company&#8217;s efforts to stay competitive in the AI market. Baidu is<a href="https://www.benzinga.com/markets/25/02/43685601/after-deepseek-shook-wall-street-chinas-baidu-gears-up-for-ai-battle-with-next-gen-ernie-5-0-launch-in-late-2025"> preparing to launch its next-generation AI model</a>, Ernie 5.0, later this year to compete with new entrants like DeepSeek. 
Furthermore, Baidu&#8217;s CEO has emphasized the importance of continued investment in AI, despite the cost-effectiveness of AI models like DeepSeek. At the World Government Summit in Dubai, Robin Li <a href="https://www.benzinga.com/markets/25/02/43616825/deepseeks-success-just-the-start-more-ai-funding-still-very-much-required-says-baidu-ceo-you-just-dont-know-when-and-where-innovations-come-from">highlighted the need for more investment </a>to develop smarter models.
<ul>
<li>READ MORE:<a href="https://www.benzinga.com/news/global/25/02/43762315/ai-adoption-to-boost-chinese-stocks-by-up-to-200-billion-predicts-goldman-sachs-eps-to-rise-by-2-5-annually-over-next-10-years"> </a><a href="https://www.benzinga.com/news/global/25/02/43762315/ai-adoption-to-boost-chinese-stocks-by-up-to-200-billion-predicts-goldman-sachs-eps-to-rise-by-2-5-annually-over-next-10-years">AI Adoption To Boost Chinese Stocks By Up To $200 Billion, Predicts Goldman Sachs: EPS To Rise By 2.5% Annually Over Next 10 Years</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Baidu's Market Value Plummets By $2.4 Billion Following CEO's Absence From Crucial Meeting Led By Chinese President Xi

U.S.-listed Chinese stocks continue to gain steam after the country introduced DeepSeek and Alibaba Group Holding&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) affordable AI models.
Alibaba Chair Joseph Tsai <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-02-13/apple-s-iphone-will-use-alibaba-ai-in-china-joe-tsai-says?sref=TBDibEcD" rel="noreferrer noopener">confirmed to</a> Bloomberg that Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) iPhones will use&nbsp;Alibaba&#8217;s AI technology. Reportedly, Apple submitted AI features that were co-developed with Alibaba for China&#8217;s approval.
Also Read: <a href="https://www.benzinga.com/markets/emerging-markets/25/02/43691826/not-just-deepseek-chinas-ai-landscape-heats-up-as-baidu-launches-free-ernie-bot" target="_blank" rel="noreferrer noopener">Not Just DeepSeek, China&#8217;s AI Landscape Heats Up As Baidu Launches Free Ernie Bot</a>
Apple&#8217;s move marks its focus on boosting <a target="_blank" href="https://www.benzinga.com/25/02/43631776/apple-teams-up-with-alibaba-for-ai-innovation-in-china-submits-ai-features-for-regulatory-approval" rel="noreferrer noopener">its position</a> in China, as the lack of Apple Intelligence capability in current iPhones in the country and government-incentivized local vendors have cost it its market share.
China also mandated that international companies collaborate with domestic companies as a primary partner, which prompted Apple to partner with&nbsp;Baidu Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>).
Apple continued its&nbsp;partnership with Baidu on AI features for the Chinese market, the Information <a target="_blank" href="https://technode.com/2025/02/14/apple-to-continue-partnership-with-baidu-collaborate-with-alibaba-on-ai-for-iphone/" rel="noreferrer noopener">reported</a>.
Baidu is developing AI-based search features for Apple to enhance image and text processing and improve the Chinese-language Siri experience. Apple had initially considered&nbsp;Baidu to be its leading AI model partner, but it did not materialize.
Apple&nbsp;has also explored&nbsp;Tencent Holding (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>),&nbsp;ByteDance, and&nbsp;DeepSeek&#8217;s&nbsp;AI models.&nbsp;
By 2028, Counterpoint expects most smartphones priced above $250 to be Generative AI-capable.
Apple&#8217;s China revenues have fallen for <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/02/43668203/apple-teams-up-with-alibaba-for-ai-analyst-says-edge-device-integration-could-boost-growth" rel="noreferrer noopener">six consecutive quarters</a> as competitors Huawei and Xiaomi (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACF#OTC">XIACF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACY#OTC">XIACY</a>) have gained a market share. BofA Securities&#8217; Wamsi Mohan expects Apple to regain its lost ground in China by launching Apple Intelligence.
China is Apple&#8217;s second-most important market after the U.S., and it is the biggest market for smartphones, computing, and artificial intelligence.
Apple is amid efforts to bring its AI features to China by the middle of 2025, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-02-14/apple-plans-to-overhaul-china-iphones-with-ai-by-middle-of-year?srnd=homepage-asia&amp;sref=TBDibEcD" rel="noreferrer noopener">reported</a>, citing unnamed sources familiar with the matter.
The iPhone maker has teams in China and the U.S. working to acclimate its Apple Intelligence platform for the country, aiming for a launch by May.
Alibaba Group stock surged 63% in the last 12 months. Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>).
Price Action:&nbsp;BABA stock is up 6.16% at $126.90 premarket at the last check Friday. BIDU is up 3.15%.
Also Read:
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<li><a href="https://www.benzinga.com/markets/emerging-markets/25/02/43619521/deepseek-impact-billionaire-david-tepper-bets-big-on-china-increases-stakes-in-alibaba-jd-com-and-pdd" target="_blank" rel="noreferrer noopener">DeepSeek Impact? Billionaire David Tepper Bets Big on China, Increases Stakes in Alibaba, JD.com, And PDD</a></li>
</ul>
Photo via Shutterstock

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PowerShares Golden Dragon Halter USX China Portfolio

XIACF

Apple Focuses On Alibaba, Baidu Partnership In Race To Bring AI Features To China by Mid-2025

Apple&nbsp;Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)&nbsp;tapped Alibaba&nbsp;Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>)&nbsp;to develop and roll out <a target="_blank" href="https://www.benzinga.com/topic/smartphones" rel="noreferrer noopener">artificial intelligence features for iPhone</a> users in China, the Information <a target="_blank" href="https://www.theinformation.com/articles/apple-partners-with-alibaba-to-develop-ai-features-for-iphone-users-in-china" rel="noreferrer noopener">cited</a> an unnamed source familiar with the matter.
Apple&#8217;s move marks its attempts to consolidate its position in China as Apple Intelligence capability is unavailable to iPhone users.
It <a target="_blank" href="https://www.benzinga.com/25/01/42986042/apple-sees-market-share-decline-in-2024-as-chinese-smartphone-brands-surge-globally-idc" rel="noreferrer noopener">lost market share</a> in the country to government-incentivized local vendors amid intensifying geopolitical tensions with the U.S.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43474095/apples-app-store-booms-as-chatgpt-productivity-apps-drive-revenue-growth-analyst-says" rel="noreferrer noopener">Apple&#8217;s App Store Booms As ChatGPT, Productivity Apps Drive Revenue Growth, Analyst Says</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/11114356/newplot-1-1.png" alt="" class="wp-image-776970" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/11114356/newplot-1-1.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/11114356/newplot-1-1-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
China also mandated international companies to tap a domestic company as a primary partner, which prompted Apple to partner with Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) to develop an AI model, only to part ways later as the latter failed to impress.
Meanwhile, Apple and Alibaba submitted their co-developed Chinese AI features for China&#8217;s regulatory approval, Reuters reports.
Apple <a target="_blank" href="https://www.benzinga.com/news/24/12/42569744/apple-reportedly-in-talks-with-tencent-tiktok-parent-bytedance-to-roll-out-ai-features-in-china" rel="noreferrer noopener">has also explored</a> Tencent Holding (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), ByteDance, and DeepSeek&#8217;s AI models. However, the DeepSeek team lacked the expertise to support a large customer like Apple, according to the report.
DeepSeek&#8217;s affordable AI model reports triggered a U.S. tech selloff, with Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) losing <a target="_blank" href="https://www.benzinga.com/25/01/43390988/deepseek-and-nvidia-under-us-investigation-ai-market-shakeup-wipes-out-1-trillion-in-tech-value" rel="noreferrer noopener">$600 billion in</a> market value in a single day.
In the U.S., Apple partnered with Microsoft-backed OpenAI to integrate <a target="_blank" href="https://www.benzinga.com/news/24/06/39256948/tim-cook-announces-apple-intelligence-for-iphones-calls-it-next-big-step-tremendously-excited" rel="noreferrer noopener">ChatGPT into iOS 18, iPadOS 18, and macOS 15 Sequoia</a>. The AI feature is available free of charge and does not log user data.
OpenAI targets a billion users&nbsp;by 2025, driven by <a target="_blank" href="https://www.benzinga.com/media/24/12/42259023/apple-partnership-ai-agents-and-major-infrastructure-investments-openai-executives-outline-strategy-to-attract-1b-users-by-2025" rel="noreferrer noopener">new AI products</a>, a key partnership with&nbsp;Apple, and significant infrastructure investments.
Recently, Apple&#8217;s Tim Cook lauded DeepSeek <a target="_blank" href="https://www.benzinga.com/markets/25/01/43373775/tim-cook-praises-chinas-deepseek-for-driving-efficiency-stresses-apples-prudent-and-deliberate-approach-toward-capital-expenditure" rel="noreferrer noopener">for driving efficiency</a>. By 2028, Counterpoint expects 90% of smartphones priced above $250 to be Generative AI-capable.
Price Actions: At last check Tuesday, AAPL stock was up 3.05% at $234.60. BABA is up 3.49%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/markets/emerging-markets/25/02/43619521/deepseek-impact-billionaire-david-tepper-bets-big-on-china-increases-stakes-in-alibaba-jd-com-and-pdd" target="_blank" rel="noreferrer noopener">DeepSeek Impact? Billionaire David Tepper Bets Big on China, Increases Stakes in Alibaba, JD.com, And PDD</a></li>
</ul>
Image Via Shutterstock

NVDA

Apple's AI Split: Chooses Alibaba For China And OpenAI For Everyone Else

As China's tech sector stages a strong comeback, investors are increasingly looking at <a href="https://www.benzinga.com/etfs">ETFs as a way to gain exposure</a> to this space. 
Whether it's internet giants, broad technology firms, or a mix of leading Chinese companies, ETFs offer a diversified way to take a bite of surrounding China's innovation boom.
Here are three ETFs that provide investors with access to China's rebounding tech sector.
Also Read: <a href="https://www.benzinga.com/news/global/25/01/43315374/ai-etfs-in-focus-as-alibaba-challenges-deepseek-with-new-model">AI ETFs In Focus As Alibaba Challenges DeepSeek With New Model</a>
<ul>
<li>Invesco China Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>): This ETF provides concentrated exposure to China's tech giants. It also mirrors the FTSE China Incl A 25% Technology Capped Index, which includes major players like Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), PDD Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), and Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), companies at the forefront of AI, e-commerce, and cloud computing. Recently, Baidu Cloud and Tencent Cloud integrated DeepSeek&#8217;s AI model into their platforms. With DeepSeek's upward rise, both companies witnessed a surge, and pulled CQQQ up along with it. The ETF has rallied 13.5% year-to-date and 45% in the past year.</li>
</ul>
<ul>
<li>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>): This ETF provides exposure to China's big internet names, mirroring the CSI Overseas China Internet Index. The fund&#8217;s holdings include major players like Alibaba (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Tencent, and Baidu. Alibaba's latest AI model has <a href="https://www.benzinga.com/25/01/43311376/alibaba-unveils-qwen25-max-claims-it-beats-deepseek-and-openai-in-ai-performance-race">reportedly outperformed</a> Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Llama and DeepSeek's V3 in various tests. This led the company's stock to surge, lifting KWEB along with it. As Wall Street brokers turn more optimistic on China's valuation discount disappearing, KWEB stands to benefit from increased foreign inflows. The ETF has grown 12.6% year-to-date and 32.5% in the past year.</li>
</ul>
<ul>
<li>iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>): This ETF provides a broader exposure while maintaining access to substantial allocation to technology stocks. China's largest and most liquid companies, including Tencent, Alibaba, Meituan and Xiaomi are among MCHI&#8217;s holdings. HSBC recently noted that the valuation gap between China and emerging markets may narrow as global funds flow into Chinese stocks. Deutsche Bank echoed the sentiment.</li>
</ul>
<h3 class="wp-block-heading">Market Overview</h3>
The Hang Seng Tech Index is currently trading at 17 times forward earnings estimates, significantly cheaper than the Nasdaq 100's 27 times valuation, according data compiled by Bloomberg. This suggests ample room for price appreciation, making MCHI an appealing option. The ETF has climbed 8.32% this year thus far, and 31.25% in the past 12 months.
After years of regulatory headwinds and economic uncertainty, China's tech sector is making a roaring comeback. A surge in AI innovation and favorable valuations have propelled the Hang Seng Tech Index into a bull market, with Wall Street analysts increasingly bullish on the space, said Bloomberg in a report. Heavyweights like Xiaomi and Alibaba are among the companies leading the rally.
Meanwhile, Bloomberg reported that analysts at Deutsche Bank argue that China's innovation-driven resurgence will force global investors to turn sharply toward the nation's stocks, despite geopolitical risks.
Favorable valuations have helped reinforce the upbeat sentiment. As Deutsche Bank's Peter Milliken put it in a research note: "We think 2025 is the year the investing world realizes China is outcompeting the rest of the world." 
Read Next: 
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<li><a href="https://www.benzinga.com/25/02/43565442/exclusive-defiance-ceo-talks-about-the-new-orcx-etf-launch-and-all-things-ai">EXCLUSIVE: Defiance CEO Talks About The New ORCX ETF Launch And All Things AI</a></li>
</ul>
Photo: Shutterstock

CHIK

CQQQ

KWEB

MCHI

China Tech ETFs Surge As DeepSeek-Led AI Boom Fuels Bull Market

Chinese technology stocks are witnessing a surge, spearheaded by DeepSeek, thereby closing the valuation gap with the U.S. &#8216;Magnificent Seven.&#8217;
What Happened: The Hang Seng Tech Index, which includes major players like Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Xiaomi, neared a four-month high after rallying over 10% in the past two weeks. At the same time, the broader Hang Seng Index climbed about 6%.
According to Bloomberg data, the 30 companies in the Hang Seng Tech Index had an average price-to-earnings ratio of 20.5 times. In comparison, the Mag. 7 giants—Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Tesla (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)—traded at an average of 41.4 times.
Alibaba&#8217;s stock price doubled during the same period after its cloud computing division integrated DeepSeek&#8217;s AI model into its offerings. At the same time, Xiaomi&#8217;s market value surpassed HK$1 trillion ($128.4 billion). Investors also made significant investments in Shenzhen-based data service provider Merit Interactive, leading to a 20% daily-limit increase since China&#8217;s onshore markets reopened after the Lunar New Year holiday, <a href="https://www.scmp.com/business/china-business/article/3297604/deepseek-fuels-chinese-tech-stock-rally-valuation-gap-narrows-vs-magnificent-seven?ref=biztoc.com">reported</a> the South China Morning Post on Thursday.
This rebound may indicate a change in the sentiment of the tech sector, which has been impacted by weak spending and increased scrutiny of fintech practices over the past four years. Some investors think the current rise in Chinese tech stocks could persist, driven by their attractive valuations and innovation, even with ongoing U.S. restrictions.
"Chinese equities, and especially technology companies, are priced at a steep discount compared to their American counterparts," a strategist at US money manager Invesco, David Chao, told the publication. 
"Similar to the AI development gap narrowing, so too is the [stock] valuation gap."
SEE ALSO: <a href="https://benzinga.com/25/02/43517403/cathie-wood-sells-palantir-shares-as-rally-cools-down-ark-invest-also-dumps-nearly-7-million-worth-of-robinhood-stock">Cathie Wood Sells Palantir Shares As Rally Cools Down, Ark Invest Also Dumps Nearly $7 Million Worth Of Robinhood Stock</a>
Why It Matters: The surge in Chinese tech stocks comes in the wake of concerns raised by billionaire Ray Dalio about <a href="https://www.benzinga.com/government/regulations/25/02/43431874/billionaire-ray-dalio-raises-valuation-concerns-as-deepseeks-new-model-hits-nvidia-stock-a-great-company-that-gets-expensive-is-much-worse-than-a-bad-company-thats-really-cheap">valuation dynamics in the tech sector</a>, particularly in the context of artificial intelligence and global economic shifts. Dalio&#8217;s comments were made as companies like DeepSeek began to make significant waves in the tech sector.
Moreover, Warren Buffett has been reportedly <a href="https://www.benzinga.com/content/43470982/market-rotation-ahead-why-value-stocks-may-outshine-big-tech">reducing his holdings </a>in growth-focused tech stocks in search of better valuations in other sectors.
Furthermore, a recent <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43289107/will-deepseek-hurt-magnificent-7-stocks-valuation">Benzinga reader poll</a> questioned the valuations of artificial intelligence companies with the surge of interest in DeepSeek, hinting at potential impacts on the &#8216;Magnificent Seven stocks.
Even President Donald Trump describes the rise of DeepSeek as a &#8220;wake-up call&#8221; in light of concerns over the long-term viability of the Western artificial intelligence boom.
On the day of the launch of the Chinese AI chatbot DeepSeek, NASDAQ dropped 3%, while Nvidia stock plummeted 17% on a single day, marking the biggest fall in U.S. stock market history.
<ul>
<li>READ MORE: <a href="https://www.benzinga.com/25/02/43428744/this-analyst-with-85-accuracy-rate-sees-more-than-8-upside-in-tesla-here-are-5-stock-picks-for-january-from-wall-streets-most-accurate-analysts">This Analyst With 85% Accuracy Rate Sees More Than 8% Upside In Tesla &#8211; Here Are 5 Stock Picks For January From Wall Street&#8217;s Most Accurate Analysts</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

AMZN

GOOG

GOOGL

MSFT

TSLA

DeepSeek's AI Model Drives Surge In Chinese Tech Stocks, Closing Gap With US 'Magnificent Seven'

<a href="https://www.benzinga.com/topic/alibaba" target="_blank" rel="noreferrer noopener">Chinese e-commerce giant</a> Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) released a new version Wednesday of its Qwen large language model, known as Qwen2.5 Max, which it said topped DeepSeek's AI model across various benchmarks.
Alibaba Cloud said Qwen2.5 Max impressed versus OpenAI's GPT-4o, DeepSeek-V3, and&nbsp;Meta Platforms Inc's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Llama-3.1-405B in specific benchmarks, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/tech/ai/alibaba-unveils-upgraded-ai-model-claims-it-surpasses-rival-deepseek-v3-506b7f28?mod=tech_lead_story" rel="noreferrer noopener">reports</a>.
Alibaba announced that Qwen2.5-Max is now available in Qwen Chat.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43302340/deepseeks-ai-breakthrough-microsoft-poised-to-benefit-but-oracle-faces-cloud-growth-challenges" rel="noreferrer noopener">DeepSeek's AI Breakthrough Benefits Microsoft, But Oracle Faces Cloud Growth Challenges: Analyst</a>
In the newly released family of AI models, <a target="_blank" href="https://github.com/QwenLM/Qwen2.5-VL/blob/main/README.md" rel="noreferrer noopener">Qwen2.5-VL</a> can parse files, comprehend videos, count objects in images, and control a PC.
This model is similar to the one powering OpenAI's recently launched&nbsp;Operator. Qwen2.5-VL model claimed to beat OpenAI's&nbsp;GPT-4o, Anthropic's&nbsp;Claude 3.5 Sonnet, and Google's&nbsp;Gemini 2.0 Flash&nbsp;in various video understanding, math, document analysis, and question-answering evaluations.
Just over a week ago, Chinese AI startup DeepSeek launched its latest open-source AI model, R1. R1 said it excelled at problem-solving, performing on par with OpenAI's GPT-4o reasoning model–but at a fraction of the cost per use.
DeepSeek's AI assistant app recently topped iPhone download rankings in the U.S.
Cloud providers, including Alibaba and Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), have doled discounts to win market share.
<a href="https://www.benzinga.com/markets/emerging-markets/25/01/43260751/not-just-deepseek-alibaba-unveils-ai-model-to-rival-openais-operator" target="_blank" rel="noreferrer noopener">U.S. tech stocks</a> plunged on Monday as DeepSeek R1&nbsp;made the market nervous over the sustainability of the AI technology investment.&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;lost $600 billion in market cap.
Price Action:&nbsp;BABA stock is up 4.21% at $100.07 at the last check on&nbsp;Wednesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/43285369/asml-lam-research-and-kla-lead-semicap-growth-as-ai-and-tech-upgrades-drive-105-billion-market-outlook" target="_blank" rel="noreferrer noopener">DeepSeek Sell-off Offers Opportunities On Semicaps, Analyst Bumps Up Price Forecasts For KLA, Nova And Camtek</a></li>
</ul>
Photo by Ascannio via Shutterstock

Movers

Alibaba Ups AI Game, Says Its Qwen2.5 Max Beats DeepSeek and OpenAI In Performance

U.S. tech stocks are crumbling like dry sand in premarket trading Monday as Chinese open-source artificial intelligence platform DeepSeek R1 sparks investor fears over AI competition and capital allocation into <a href="https://www.benzinga.com/markets/equities/25/01/43221806/nvidia-amd-broadcom-smci-tsmc-and-other-tech-giants-lead-monday-pre-market-selloff-as-nasdaq-100-futures-plummet-over-650-points-amid-reports-of-chinese-ai-startup-deepseek-overtaking-chatgpt">high-cost American firms.</a>
Futures on the Nasdaq 100 plunged 4% as of 8:00 a.m. ET, setting the stage for their worst session since September 2022. 
Semiconductor stocks, the backbone of AI development, are bearing the brunt of the selloff, with AI darling Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) plunging 12%, potentially eyeing its worst day since March 18, 2020.
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) is down 4.5%, with heavy losses also hitting Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), down 13%, Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), down 11%, and Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), down 9.5%.
AI infrastructure and data center stocks are also seeing steep declines, with GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) plummeting 14%, Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) and Constellation Energy Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>) both sliding 11.5%, and Arista Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) falling 10%.
The S&amp;P 500 is not immune to the fallout, with futures on the index falling 2.2%, while the Dow Jones Industrial Average is inching 0.8% lower due to its smaller exposure to tech. 
With AI stocks leading market gains over the past year, today's rout threatens to wipe out $1.2 trillion in market capitalization.
<h3 class="wp-block-heading">DeepSeek: A Game-Changer In AI?</h3>
DeepSeek R1, an open-source AI model, is reportedly rivaling top U.S. AI models at a fraction of the cost, leveraging lower-power NVIDIA chips to bypass U.S. export restrictions.
&#8220;DeepSeek has produced a large language model that rivals many of the leading U.S. offerings. And they've done it at a fraction of the cost, using less powerful chips,&#8221; said David Morrison, senior market analyst at Trade Nation.
Investors are now questioning whether AI software firms can sustain their pricing models. 
Bloomberg Intelligence analyst Mandeep Singh highlighted that OpenAI charges $200 per month for its premium subscription, raising doubts about its pricing power if open-source alternatives offer similar or superior performance at a significantly lower cost.
&#8220;How do you justify that cost if an open-source platform does it better?&#8221; Singh said.
With billions in capital expenditures planned for 2025-2027, any shift in corporate spending could redefine the trajectory of AI investing.
&#8220;I don't think they are walking back on 2025 capex,&#8221; Singh added, dismissing the idea that companies would scale back investments immediately.
The AI frenzy that has propelled the &#8220;Magnificent Seven&#8221; stocks to record highs is now facing its biggest test. With major U.S. tech earnings due this week, investors are demanding answers.
&#8220;If the Mag-7&#8217;s Q4 earnings disappoint, these seven stocks could drag the S&amp;P 500 down significantly since they account for a whopping 30.5% of the market cap of the index,&#8221; warned Ed Yardeni, President of Yardeni Research.
<h3 class="wp-block-heading">Chinese Stocks To Watch</h3>
In a note on Sunday, Goldman Sachs analyst Ronald Keung highlighted that DeepSeek's breakthrough could lower barriers to entry in AI, paving the way for increased global competition. 
&#8220;We believe increasingly agile Chinese models and significant improvement in computing cost efficiencies could drive further room for wider adoption, exploration, and proliferation of AI applications,&#8221; Keung said.
He also indicated the potential for Chinese AI firms to expand their influence, pointing to companies like Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), China's largest cloud provider, and Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), which has deep AI integration within its WeChat ecosystem.
According to Keung, also data centers GDS Holdings Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GDS#NASDAQ">GDS</a>) and Vnet Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VNET#NASDAQ">VNET</a>) are expected to &#8220;benefit from ongoing public cloud and AI computing demand growth from multi-year higher AI adoption.&#8221;
Now Read: 
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<li><a href="https://www.benzinga.com/tech/25/01/43223228/satya-nadella-said-we-should-take-development-out-of-china-very-very-seriously-now-deepseeks-r1-has-emerged-as-chatgpt-killer-outperforming-openai-with-50x-cheaper-prices-heres-more">Satya Nadella Said &#8216;We Should Take Development Out Of China Very, Very Seriously.&#8217; Now, DeepSeek&#8217;s R1 Has Emerged As A ChatGPT Killer, Outperforming OpenAI With 50x Lower Costs: Here&#8217;s More</a></li>
</ul>
Image: Shutterstock

Large Cap

Sector ETFs

Broad U.S. Equity ETFs

Econ #s

ETFs

ANET

AVGO

MRVL

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

VNET

DeepSeek Jitters Shatter US Tech Stocks, Wipe Out $1.2 Trillion On Wall Street: Analyst Eyes Four Chinese Giants Set To Benefit

Tim Sweeney, CEO of Epic Games, has reaffirmed his commitment to the ongoing legal battle against Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Alphabet Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google. He is prepared to extend this fight for decades if necessary.
What Happened: Epic Games, backed by Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) has been embroiled in a long-running legal fight with Apple and Google over their app store practices, which Epic argues are monopolistic.
While Epic continues to rake in billions from Fortnite and its Unreal Engine business, Sweeney indicated that his company could face financial struggles as the battle drags on.
See Also: <a href="https://www.benzinga.com/news/24/10/41220186/google-will-continue-to-fight-epic-games-in-court-to-halt-epic-requested-changes-to-play-store-under">Google Will Continue To Fight Epic Games In Court To Halt Epic-Requested Changes To Play Store: &#8216;Undercut Android&#8217;s Ability To Compete With Apple&#8217;s iOS&#8217;</a>
Sweeney said, "Yeah, I think we might run into serious financial problems after a couple more decades of this. But we&#8217;re determined to fight this out," according to an IGN <a href="https://in.ign.com/fortnite/223252/news/tim-sweeney-says-epic-can-afford-to-keep-spending-billions-fighting-apple-and-google-for-the-future">report</a>.
"I expect large parts of this struggle will go on throughout the rest of this decade and we&#8217;re fully committed to going through it and investing to break through," he added.
In September 2023, Epic Games announced a major workforce reduction, laying off approximately 830 employees, which accounted for about 16% of its total staff.&nbsp;
Sweeney previously stated that Epic had been &#8220;spending way more money than we earn,&#8221; referring to the need for a &#8220;major structural change to our economics.&#8221;
Despite these challenges, Sweeney <a href="https://www.benzinga.com/general/gaming/24/10/41151404/epic-games-is-now-financially-sound-says-ceo-tim-sweeney-after-major-layoffs">declared the company</a> &#8220;financially sound&#8221; during a presentation at Unreal Fest 2024.&nbsp;
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
Why It Matters: On Thursday, the company also launched third-party games on the Epic Games Store on mobile, with a more favorable revenue-sharing model: Epic keeps 12% of the revenue from payments it processes, and 0% from third-party payments.
As part of this new initiative, nearly 20 third-party games are now available on the Epic Games Store on mobile, with 19 games on Android globally and 16 games on iOS in the EU.
Epic is also offering free games as part of a new program, including Bloons TD 6 and Dungeon of the Endless: Apogee, free to download until Feb. 20. New free games will be offered each month, with the plan to move to a weekly schedule later this year.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The wait is over! Nearly 20 new games, fresh features and our Free Game program are now live in the Epic Games Store on mobile &#x1f929; Grab Dungeon of the Endless: Apogee for FREE through February 20. More info: <a href="https://t.co/UlNwQ8CEEI">https://t.co/UlNwQ8CEEI</a> <a href="https://t.co/2hpNNefHex">pic.twitter.com/2hpNNefHex</a>
&mdash; Epic Games Store (@EpicGames) <a href="https://twitter.com/EpicGames/status/1882630268336660864?ref_src=twsrc%5Etfw">January 24, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Photo courtesy: Shutterstock
Check out more of Benzinga's Consumer Tech coverage by <a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

Epic Games CEO Tim Sweeney Prepared To Spend Billions For Decades Fighting Apple, Google Monopolies: 'We Think Our Best Days Are Ahead'

Tencent Holdings Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) partner Krafton Inc of&nbsp;PUBG: Battlegrounds allocated over 200 billion won ($136 million) to over <a target="_blank" href="https://www.benzinga.com/topic/gaming-industry" rel="noreferrer noopener">twelve game studios</a>.
The South Korean gaming company is expanding its portfolio of original content in sync with its artificial intelligence investment, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-13/-pubg-developer-plans-a-spending-spree-in-search-of-more-hits?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> CEO&nbsp;Kim Changhan.
Changhan told Bloomberg that Krafton dedicated 80 engineers to deep learning and AI and plans to add 35 in 2025.
Also Read: <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41462659/netflix-ends-aaa-game-development-at-california-studio" rel="noreferrer noopener">Netflix Ends AAA Game Development At California Studio</a>
Changhan told Bloomberg that Krafton had doled $680 million in <a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40949473/why-krafton-bought-tango-gameworks-from-microsoft-ceo-kim-reveals-we-dont-think-hi-fi-rush-2-is-go" rel="noreferrer noopener">building stakes in</a> game studios over the past two years, including Madrid-based EF Games and Japan&#8217;s Tango Gameworks.
Krafton tapped&nbsp;Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;to showcase more lifelike non-player characters, which will debut in Krafton&#8217;s Inzoi life simulation game on PC in March, they announced <a target="_blank" href="https://www.benzinga.com/media/25/01/42843417/nvidia-highlights-ai-chips-powering-pubg-robotics-chatgpt-moment-automotive-expansion-and-more-at-ces-event" rel="noreferrer noopener">at a CES event</a> last week.
Krafton also targets similar AI features on the device where players play PUBG.
Since assuming the CEO role in 2020, Changhan has boosted investments in India. The company has over 100 employees working in India, Kim told Bloomberg.
Last November, Elon Musk <a target="_blank" href="https://www.benzinga.com/general/gaming/24/11/42229052/elon-musks-xai-plans-to-make-games-great-again-with-ai-driven-game-studio-can-his-vision-reshape-a-gaming-industry-dominated-by-large-corporations" rel="noreferrer noopener">tweeted that his</a> AI startup,&nbsp;xAI, would begin an AI-driven game studio, challenging the large, corporate-owned game studios, which prioritize profit over player engagement and creativity. Musk had previously <a target="_blank" href="https://www.benzinga.com/general/gaming/24/11/42229052/elon-musks-xai-plans-to-make-games-great-again-with-ai-driven-game-studio-can-his-vision-reshape-a-gaming-industry-dominated-by-large-corporations" rel="noreferrer noopener">voiced his appreciation</a> for Elden Ring from Japanese studio&nbsp;FromSoftware&nbsp;and&nbsp;Diablo IV&nbsp;from&nbsp;Microsoft Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)&nbsp;Blizzard.&nbsp;
Last October, JPMorgan analysts <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41476657/jpmorgan-updates-video-game-industry-coverage-taps-roblox-as-top-pick" rel="noreferrer noopener">expressed optimism over</a> mobile gaming trends and spending on consoles backed by an intense game slate. They flagged Roblox Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>) as a favorite backed by engagement trends, ads, and commerce business ramping and free cash flow.
JPMorgan also highlighted Applovin Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) as the leading in-app monetization platform for mobile gaming companies. They pointed to Electronic Arts Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) position as the pure-play game publisher in the industry.&nbsp;
Also Read:
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<li><a href="https://www.benzinga.com/general/gaming/24/09/40801168/ubisoft-is-mismanaged-shareholders-are-hostages-investor-demands-video-game-company-go-private-aft" target="_blank" rel="noreferrer noopener">Ubisoft Is &#8216;Mismanaged, Shareholders Are Hostages&#8217;: Investor Demands Video Game Company Go Private After Stock Drop</a></li>
</ul>
Photo by Sergei Elagin via Shutterstock

Emerging Markets

RBLX

PUBG Developer Krafton Invests $136 Million in Game Studios, Expands AI Team for Future Gaming Innovations

<a href="https://www.benzinga.com/topic/chinese-stocks">US-listed Chinese stocks</a>, including Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Baidu, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), JD.com, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), and XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>), are trading lower Friday as geopolitical tensions escalate between Washington and China over a potential artificial intelligence technology embargo on the Asian country.
Reportedly, Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and other chipmakers face a <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">potential US embargo</a> limiting AI chip exports to China. The new semiconductor sanctions could prohibit Nvidia&#8217;s AI chip shipments to nations like China.
Also Read: <a href="https://www.benzinga.com/25/01/42822512/goldman-sachs-backs-chinese-equities-as-markets-react-to-economic-slowdown-and-tariff-concerns" target="_blank" rel="noreferrer noopener">Goldman Sachs Backs Chinese Equities as Markets React to Economic Slowdown and Tariff Concerns</a>
Washington blacklisted Chinese companies, including gaming giant Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and EV battery maker Contemporary Amperex, citing national security threats.
The Street remains jittery over China&#8217;s economic recovery. The domestic stimulus measures failed to uplift sentiments and semiconductor sanction speculations pose a double whammy.
Edith Qian of CGS International flagged a volatile first half for Chinese stocks <a href="https://www.scmp.com/business/china-business/article/3294152/hong-kong-stocks-set-worst-week-2-months-china-outlook-trade-tensions" target="_blank" rel="noreferrer noopener">to the</a> South China Morning Post (SCMP), citing the escalation of US-China bilateral tensions as the government of President-elect Donald Trump prepares to assume office on January 20.
Hong Kong&#8217;s stock market lost $118 billion in capitalization this week, the SCMP reports. China&#8217;s central bank agreed to avoid buying more government bonds to contain the yuan depreciation.
A strong US labor market has also prompted traders to resist the Federal Reserve&#8217;s rate cuts, curbing investors&#8217; appetite for stocks.
Investors can gain exposure to stocks of companies that are domiciled in China through iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) and KraneShares Trust KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>).
Read Also:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/42767647/chinese-stocks-drop-as-manufacturing-growth-slows-and-geopolitical-tensions-hit" target="_blank" rel="noreferrer noopener">Chinese Stocks Drop As Manufacturing Growth Slows And Geopolitical Tensions Hit</a></li>
</ul>
Photo: Shutterstock

XPEV

Alibaba, Baidu, JD, NIO, Li Auto Stocks Slide As Potential AI Chip Sanctions Add Pressure On China

Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and Contemporary Amperex Technology Co. Limited, two of China&#8217;s leading technology companies, are preparing legal challenges after being added to the U.S. Department of Defense&#8217;s list of Chinese Military Companies on Wednesday.
What Happened: The designation, which primarily affects U.S. defense procurement, triggered significant market reactions. Tencent&#8217;s shares fell 7.8% in Hong Kong trading on Tuesday, while CATL&#8217;s stock dropped 6% in Shenzhen. Both companies strongly denied any military connections and announced plans to engage with U.S. authorities.
Tencent, a major gaming and social media conglomerate, stated in a regulatory filing that it is &#8220;neither a Chinese military company nor a military-civil fusion contributor.&#8221; The company, led by Chairman Ma Huateng, emphasized that the listing wouldn&#8217;t affect its broader business operations or securities trading.
Tencent owns Riot Games, and Supercell, and has stakes in Reddit, Snap, and Epic Games.
CATL, a key supplier to Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), similarly rejected the designation, stating it has &#8220;never engaged in any military-related business or activities.&#8221; The company assured shareholders that the listing would not substantially impact its operations.
Both Tencent and CATL have initiated reconsideration processes and indicated their willingness to pursue legal action if necessary.
See Also: <a href="https://www.benzinga.com/25/01/42860759/10-best-stock-traders-in-congress-in-2024-where-do-nancy-pelosi-pete-sessions-susan-collins-marjorie-taylor-greene-rank">Top 10 Stock Traders In Congress For 2024: How Nancy Pelosi, Pete Sessions, Susan Collins, Marjorie Taylor Greene Rank</a>
Why It Matters: This development comes amid escalating <a href="https://www.benzinga.com/government/24/05/39057312/chinese-firms-blacklisted-in-us-rebrand-themselves-as-american-to-avoid-sanctions-imposed-by-biden-a">U.S.-China trade tensions</a>. China&#8217;s Ministry of Commerce recently imposed new trade controls, adding 28 U.S. companies to an export control list and restricting major defense contractors like Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) from operating in China.
Despite these challenges, Tencent continues to show <a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/42827152/tencent-strengthens-video-leadership-showcases-revenue-growth-potential-analyst">strong business fundamentals</a>. Goldman Sachs recently maintained a Buy rating on the company, citing its leadership in video entertainment and artificial intelligence development. The company&#8217;s WeChat ecosystem remains robust, with users accessing the app 40-50 times daily.
The Pentagon&#8217;s designation specifically relates to <a href="https://www.benzinga.com/news/global/25/01/42838053/us-adds-tencent-tesla-supplier-catl-to-chinese-military-blacklist-shares-tumble">Section 1260H list compliance</a>, which serves as a warning mechanism for U.S. entities but does not prohibit general business dealings or securities transactions with listed companies. 
Price Action: Tencent&#8217;s stock is trading at HK$ 373.60 ($48.04) on Wednesday, down 1.58% for the day. Over the past year, the stock has gained 29.51%. 
CATL&#8217;s stock is currently trading at CNY 246.28 ($33.59) on Wednesday, down 1.27% for the day. Over the past year, the stock has surged 64.09%.
Read Next: 
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</ul>
Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Legal

Tesla Supplier CATL, Riot Games Owner Tencent Plan Legal Action Over Pentagon Blacklist, Deny Military Ties

The U.S. Department of Defense, on Monday, added several Chinese firms, including Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) supplier Contemporary Amperex Technology Co. Limited (CATL), Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), to its list of companies allegedly supporting Beijing's military efforts, causing a sharp decline in their stock values.
What Happened: The U.S. Department of Defense expanded its &#8220;Section 1260H list&#8221; to include Tencent Holdings and CATL, citing their alleged contributions to China&#8217;s military advancements. This move serves as a warning to U.S. entities regarding the potential risks of engaging with these firms.
Following the announcement, Tencent&#8217;s shares dropped by 7.8% in Hong Kong, while CATL&#8217;s stock saw a 6% decline in Shenzhen. Both companies denied any involvement with China&#8217;s military and expressed their intent to cooperate with U.S. authorities to rectify the situation.
See Also:&nbsp;<a href="https://www.benzinga.com/news/24/05/39036025/second-trump-term-could-lead-to-confrontational-relationship-between-china-us-says-expert-likely-exp?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Second Trump Term Could Lead To ‘Confrontational Relationship' Between China, US, Says Expert: ‘Likely Experience A New Round Of Large-Scale Decline&#8217;</a>
Why It Matters: The U.S. blacklisting of Tencent and CATL comes amid heightened trade tensions, with both nations targeting each other's key industries. On Thursday, China's Ministry of Commerce <a href="https://www.benzinga.com/government/24/05/39057312/chinese-firms-blacklisted-in-us-rebrand-themselves-as-american-to-avoid-sanctions-imposed-by-biden-a">imposed new trade controls</a>, adding 28 U.S. companies to an export control list and banning the export of dual-use items that serve both military and civilian purposes. Major U.S. defense contractors, including Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Boeing (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), were also placed on China's Unreliable Entity List, prohibiting their operations in China and restricting executives from entering the country.
This back-and-forth escalation highlights the growing challenges faced by global businesses navigating geopolitical uncertainties. Experts, like Andrew Gilholm of Control Risks, note that while many sanctions are symbolic, the expanding scope and frequency of these actions signal a more aggressive stance from both nations. Additionally, Chinese firms are responding to U.S. restrictions by <a href="https://www.benzinga.com/government/24/05/39057312/chinese-firms-blacklisted-in-us-rebrand-themselves-as-american-to-avoid-sanctions-imposed-by-biden-a">rebranding and establishing</a> U.S.-based entities to sidestep sanctions, further complicating regulatory landscapes.
Read Next:&nbsp;
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<li><a href="https://www.benzinga.com/news/24/05/39026454/senior-us-lawmaker-confirms-taiwans-ordered-weapons-are-on-their-way-as-china-escalates-military-ten?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Senior US Lawmaker Confirms Taiwan's Ordered Weapons Are On Their Way As China Escalates Military Tension</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors
Image by katjen via Shutterstock

Global

General

US Adds Tencent, Tesla Supplier CATL To 'Chinese Military' Blacklist, Shares Tumble

Goldman Sachs analyst Ronald Keung maintained a Buy rating on Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and a <a href="https://www.benzinga.com/quote/TCEHY/analyst-ratings" target="_blank" rel="noreferrer noopener">price target of</a> 542 Hong Kong dollars ($69.70 U.S. dollars).
Keung attended the Tencent Video All-Star Night alongside investor meetings held in Macau on Jan. 4, 2025, hosted by Tencent&#8217;s Chief Strategy Officer James Mitchell, Tencent Video CEO Sun Zhonghuai, China Literature CEO Hou Xiaonan and the Investor Relations team.
The analyst flagged platform leadership over the years on the back of patience and balanced execution and transformation mindsets, demonstrated by a consistent track record of surpassing its competitors and subsequently becoming the industry leader across multiple internet domains (Tencent Video, Tencent Pay, Tencent Games) leveraging effective deployment of resources.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42770035/bank-of-america-citigroup-exit-climate-alliance-as-trump-policies-shift-energy-priorities" rel="noreferrer noopener">Bank of America, Citigroup Exit Climate Alliance As Trump Policies Shift Energy Priorities</a>
Keung highlighted the company&#8217;s focus on critical resources and multi-strategies for exploring AI opportunities. With critical resources such as the company&#8217;s hypercomputing cluster (HPC) and increasingly sophisticated data, the company noted it had narrowed the gap with domestic and global peers and is on track to explore generative AI opportunities, including to-C applications, given its unique, highly engaging WeChat ecosystem, with users opening the Weixin app 40-50 times a day.
The analyst flagged Tencent Video&#8217;s help in solidifying the company&#8217;s leadership in online video entertainment driven by art and technology. He noted Tencent Video is gradually entering a period of high-quality content creation with healthy profitability through focusing resources on slates, improving the membership mix, taking anti-pirating measures by limiting the number of devices per account, and continuing operating expenditure discipline.
Keung highlighted China Literature as a key catalyst for the company. The three-stage development of IP enables Tencent to monetize its key IPs emerging from online literature by adapting them into multiple entertainment formats, including games, drama, animation, and merchandise sales, and gradually expand overseas in the long term.
Keung came out of the event remaining confident in Tencent&#8217;s extended runway of revenue growth and compounding the potential for earnings, with Tencent&#8217;s unique WeChat ecosystem and global gaming and content assets with multiple emerging monetization levers across video account, e-commerce (with MiniShops and its recent launch of the Weixin gifting function), Weixin search, wealth management and enterprise software, that should enable the company to deliver compounding of earnings growth through volatile macrocycles.&nbsp;&nbsp;
Tencent is trading at 15 times 2025E P/E (12 times ex-portfolio), with a consistent shareholder return policy where it surpassed its 2024 annual buyback target with 112 billion Hong Kong dollars ($14,403,760,000 U.S. dollars) worth of shares repurchased versus a target of over 100 billion Hong Kong dollars ($12,860,330,000 U.S. dollars), which reduced its total share count to the lowest level in the past 10 years.
TCEHY Price Action: Tencent Holdings stock is down 8.18% at $48.82 at publication Monday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/42767647/chinese-stocks-drop-as-manufacturing-growth-slows-and-geopolitical-tensions-hit" target="_blank" rel="noreferrer noopener">Chinese Stocks Drop As Manufacturing Growth Slows And Geopolitical Tensions Hit</a></li>
</ul>
Photo: katjen via Shutterstock

Price Target

Reiteration

Analyst Ratings

Trading Ideas

Tencent Strengthens Video Leadership, Showcases Revenue Growth Potential: Analyst

Pentagon Federal Register Has Added Chinese Firms Tencent, CATL, Autel, Changxin Memory Technologies, Quectel Wireless To U.S. List Of Firms Alleged To Help Beijing's Military

Elon Musk is reportedly gearing up to introduce a new Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and cryptocurrency feature called "X Money" on his rebranded platform, X, formerly Twitter.
What Happened: According to a leak reported by influencer Alex Finn and MacRumors contributing researcher Aaron Perris on Friday, "X Money" might launch without needing approval from all 50 states.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">&#x1f6a8;BREAKING: X PAYMENTS LAUNCHING IMMINENTLY New X code has just shipped that reveals X Payments will launch WITHOUT approval from all 50 states Meaning X Payments could launch TODAY Creators could start earning WAY MORE money immediately States it will be available: 1.… <a href="https://t.co/8Wej1XrIQK">pic.twitter.com/8Wej1XrIQK</a>
&mdash; Alex Finn (@AlexFinnX) <a href="https://twitter.com/AlexFinnX/status/1874916936032870834?ref_src=twsrc%5Etfw">January 2, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">It seems like X plans to launch X money in the US before getting approval in all 50 states <a href="https://t.co/M8QBHf3U6S">pic.twitter.com/M8QBHf3U6S</a>
&mdash; Aaron (@aaronp613) <a href="https://twitter.com/aaronp613/status/1874898592181436658?ref_src=twsrc%5Etfw">January 2, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/25/01/42780776/is-apple-ready-for-a-new-challenge-chinas-smartphone-subsidies-aim-to-boost-domestic-demand-giving-companies-like-huawei-the-upper-hand?itm_source=parsely-api">Apple Rival Huawei, Alibaba And Others Get Boost As China Doles Out Subsidies To Smartphone Buyers</a>
X CEO Linda Yaccarino said earlier this week that payments, including &#8216;X Money,&#8217; will be <a href="https://www.benzinga.com/general/education/25/01/42794433/if-you-invested-1000-in-dogecoin-when-elon-musk-acquired-twitter-heres-how-much-youd-have-now">integrated into the platform</a> in 2025. The idea behind it is to transform X into an &#8220;everything app&#8221; similar to Tencent Holdings Limited&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) WeChat.
X payments' support for cryptocurrency could potentially trigger a bitcoin price surge similar to PayPal Holdings Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) 2021 crypto support, <a href="https://www.forbes.com/sites/digital-assets/2025/01/05/x-money-leak-reveals-elon-musks-game-changing-plan-as-bitcoin-nears-100000-price/">noted</a> Forbes.
Bitcoin&#8217;s value currently hovers around the $100,000 mark. The apex cryptocurrency touched an all-time high of $108,268.45 on Dec. 17, 2024. 
Why It Matters: The potential launch of &#8216;X Money&#8217; comes amid a series of events that have kept Musk in the crypto spotlight.
Last month, <a href="https://www.benzinga.com/24/12/42739155/elon-musk-changes-his-name-to-kekius-maximus-on-x-sending-to-memecoin-skyrocketing-over-600">Musk changed his name</a> on X to &#8220;Kekius Maximus,&#8221; causing a similarly-named meme coin, Kekius Maximus (KEKIUS), to skyrocket over 600% in value. However, KEKIUS<a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42758291/elon-musks-return-to-original-x-avatar-causes-coin-themed-on-kekius-maximus-to-crash-90-frog-themed-pepe-slips-as-well"> crashed by 90%</a> when Musk reverted to his original avatar in January.
Musk&#8217;s influence in the crypto market also became evident when an adult-themed meme <a href="https://www.benzinga.com/25/01/42780378/elon-musks-x-post-now-sends-this-adult-themed-crypto-up-175">coin surged 175% after he</a> referenced it in a post on X.
While Musk has not directly commented on Bitcoin recently, his support for Donald Trump in the upcoming U.S. presidential election has been linked to rising Bitcoin prices.
His role as an influential advisor to the President-elect has also fueled speculation about the creation of a <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42378618/musk-fuels-speculation-on-us-bitcoin-reserve-as-crypto-surges">U.S. Bitcoin strategic reserve</a>.
Price Action: Bitcoin is currently priced at $98,247, reflecting a 0.17% increase over the past 24 hours. Its trading volume has risen by 2.45%, reaching $21.52 billion, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
Photo Courtesy: Shutterstock.com
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

$BTC

PYPL

Elon Musk's Push For Crypto-Powered 'Everything App' Reflected In 'X Money' Leak As Bitcoin Hovers Around $100K

In 2024, Chinese stocks finally rebounded from challenges like the pandemic, property market struggles, and weak consumer confidence, ditching a three-year losing streak despite a slight dip on the <a href="https://www.benzinga.com/topic/china">final trading day. </a>
The CSI 300, which tracks major companies in Shanghai and Shenzhen, climbed 14.7% last year, while the Shanghai Composite Index gained 12.8%.
In Hong Kong, the Hang Seng Index jumped 17.7% for the year, clocking its first annual gain in five years. Analysts at Value Partners, as reported by Reuters, attributed the rally to stronger-than-expected policy support from Chinese authorities, including interest rate cuts, property incentives, and funding programs to boost stock buying.
Banking stocks stood out as top performers in China, increasing 34.7%, with the biggest state banks soaring to multi-year highs. The chip sector&#8217;s growth is also worth mentioning, moving 53.9% northward as investors leaned into domestic semiconductor firms amid U.S. restrictions.
Interestingly, according to Reuters, strategists suggest that the market is nearing the end of &#8220;policy expectation-driven&#8221; trading, with optimism about continued dividends in 2025 despite potential disruptions from U.S. political changes. 
Also, taking into consideration what China President Xi Jinping said in his annual new year&#8217;s eve speech, China's GDP is likely to grow <a href="https://www.bloomberg.com/news/articles/2024-12-31/xi-says-china-s-2024-gdp-growth-expected-to-be-around-5?srnd=homepage-asia" target="_blank" rel="noreferrer noopener">around 5%</a> in 2024, meaning it is set to meet its official target. Jinping also mentioned continued economic support measures and more proactive macroeconomic policies for 2025.
Now that we have briefly examined what China&#8217;s future holds, let&#8217;s look at how some Chinese stock-focused ETFs are poised to perform.
See Also: <a href="https://www.benzinga.com/news/global/25/01/42772220/us-global-launches-technology-and-aerospace-defense-etf-why-its-allocation-makes-sense">US Global Launches Technology And Aerospace &amp; Defense ETF: Why Its Allocation Makes Sense</a>
Franklin FTSE China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLCH#NYSE">FLCH</a>) is an underdog among China-focused ETFs, with $145.27 million in assets under management. According to Franklin Templeton, FLCH "provides access to the Chinese stock market, allowing investors to precisely gain exposure to China at a low cost," with targeted exposure to large- and mid-sized companies in China. 
The low 0.19% expense ratio is a relief for investors outside China, as investing in Chinese stocks is expensive. Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) holds the biggest piece of the holdings pie, with 14.38% allocation, followed by Alibaba Group Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>). The fund has generated 15.03% returns in 2024.
iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) has around $5.4 billion in AUM, a much bigger ETF than FLCH in volume, with an expense ratio of 0.59%. Despite the expense ratio being on the higher side, the fund has grown 21.11% in 2024, reflecting positive demand among investors. Coincidentally, this ETF also allocates the biggest chunk of its holdings (16.59%) to Tencent, and the second largest piece (8.13%) to Alibaba.
iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>), as the name suggests, focuses on Chinese blue-chip stocks, and has an AUM of $7.1 billion. The high-end expense ratio of 0.74% did not deter investors from rushing into the fund, pushing the price up by 23.31% through 2024. The fund provides exposure to 50 of the largest Chinese stocks in a single portfolio, offering broad coverage of major companies.
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Chinese Stocks Rebound In 2024 After 3-Year Slump: 3 ETFs To Watch

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) slashed its <a target="_blank" href="https://in.benzinga.com/topic/llm" rel="noreferrer noopener">large language model</a> prices by up to 85%, exhibiting intense domestic rivalry in the AI space.
Chinese companies remain engaged in a price war to win market share, prompting Alibaba Cloud to initiate discounts on its visual language model, Qwen-VL, CNBC <a target="_blank" href="https://www.cnbc.com/2024/12/31/alibaba-baba-cloud-unit-slashes-prices-on-ai-models-by-up-to-85percent.html" rel="noreferrer noopener">cites</a> from Alibaba&#8217;s WeChat post on Tuesday.
In February, the Chinese e-commerce juggernaut&nbsp;announced up to 55% discounts on its core cloud products.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42729529/social-media-stocks-react-as-trump-targets-censorship-and-delays-tiktok-ban" rel="noreferrer noopener">Trump Administration to Challenge Social Media Censorship, Setting Stage for Conflict with EU Regulations</a>
Jack Ma&#8217;s co-founded company slashed its Qwen AI model&nbsp;prices by up to 97% in May. Qwen-VL can interpret both texts and images.
Chinese tech firms, including Alibaba,&nbsp;Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>),&nbsp;Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>),&nbsp;and JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), launched their large language models.
In the third quarter, <a target="_blank" href="https://www.benzinga.com/news/24/11/41785553/alibabas-ai-strategy-massive-ad-spend-to-dominate-crowded-market" rel="noreferrer noopener">Chinese companies spent</a> 500 million yuan ($70.2 million) on promotional campaigns for AI applications. Alibaba committed 200 million yuan to promote the Quark cloud storage and search platform.
Alibaba remains focused on LLM efforts in the enterprise segment rather than launching a consumer AI chatbot like OpenAI&#8217;s ChatGPT. Alibaba Cloud Intelligence Group revenue grew by 7% to $4.22 billion <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42006281/alibaba-q2-earnings-revenue-beats-forecast-cloud-and-international-sales-shine-free-cash-flow-falls-amid-strategic-investments" rel="noreferrer noopener">in the second quarter</a>.
Alibaba, Tencent, and&nbsp;Baidu disbursed $7 billion on AI infrastructure and processors in the first half of 2024.
Meanwhile, Wedbush&#8217;s Dan Ives&nbsp;expects the U.S. Big Techs, including Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), to spend $1 trillion&nbsp;on AI capital expenditure.
Alibaba Group Holding stock surged over 13% in the last 12 months. Investors can gain exposure to the stock through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROBT#NASDAQ">ROBT</a>).
Price Action: BABA stock traded lower by 1.04% at $83.91 premarket at the last check on Thursday.
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ROBT

Alibaba Leverages Scale and Deep Pockets to Slash AI LLM Prices To Gain Market Share

The <a target="_blank" href="https://www.benzinga.com/topic/video-games" rel="noreferrer noopener">video game industry</a> is grappling with high budgets for outlandish graphics that fail to generate consistent financial returns.
Titles like Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) Marvel&#8217;s Spider-Man 2 on the Sony Group Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) PlayStation 5 bear testimony to the technical prowess of modern gaming, but the escalating costs have begun to outpace revenues, the New York Times <a target="_blank" href="https://www.nytimes.com/2024/12/26/arts/video-games-graphics-budgets.html" rel="noreferrer noopener">reports</a>.
Developers are now questioning the viability of this approach as industry layoffs and closures mount.
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After its Activision Blizzard acquisition, Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) laid off <a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40859756/activision-blizzard-mobile-games-face-cuts-after-microsofts-latest-round-of-layoffs-what-went-wron" rel="noreferrer noopener">almost 2,550 employees</a> in its gaming unit.
In October, Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) closed its AAA game studio, Team Blue, less than a year <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41462659/netflix-ends-aaa-game-development-at-california-studio" rel="noreferrer noopener">after its formation</a>. In August, Ubisoft Entertainment&nbsp;SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) <a target="_blank" href="https://www.benzinga.com/general/gaming/24/08/40445836/ubisoft-cuts-45-more-jobs-in-latest-round-of-us-studio-layoffs" rel="noreferrer noopener">fired 45 employees</a> from its San Francisco studio and Red Storm Entertainment in Cary, North Carolina.
Ubisoft is reportedly in talks with Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) about a buyout <a target="_blank" href="https://www.benzinga.com/general/gaming/24/12/42372040/ubisoft-stock-jumps-14-after-reports-of-tencent-buyout" rel="noreferrer noopener">after grappling with</a> disappointing sales and studio closures. Meanwhile, Tencent denied speculation surrounding a 30% layoff at <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41609208/tencent-shuts-down-layoff-rumors-while-announcing-major-leadership-shake-up" rel="noreferrer noopener">its LightSpeed Studios</a>.
Despite selling over 11 million copies, &#8220;Spider-Man 2&#8221; exemplifies the challenges of creating cinematic games, which require enormous investments. Gaming studio closure&nbsp;and&nbsp;layoffs&nbsp;have claimed over 20,000 jobs in the past two years.
The New York Times <a target="_blank" href="https://www.nytimes.com/2024/12/26/arts/video-games-graphics-budgets.html" rel="noreferrer noopener">reports</a> that Insomniac Games spent $300 million to develop the sequel, more than triple the budget of its predecessor. Yet, Sony, the game&#8217;s publisher, still laid off 900 employees in 2024.
New York University professor and market analyst Joost van Dreunen and Jacob Navok, a former gaming executive, told the NYT the younger generation&#8217;s preference for accessible titles like Minecraft and Roblox Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>). These titles prioritize interaction over graphics, starkly contrasting the costly cinematic experiences of blockbuster franchises.
High-fidelity games like the remastered version of The Last of Us: Part II face steep development costs that often outweigh their financial returns.
Meanwhile, live-service games like Genshin Impact generate billions annually by focusing on mobile-friendly content and consistent updates, but this model carries risks.
Warner Bros. Discovery Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) lost $200 million on &#8220;Suicide Squad: Kill the Justice League,&#8221; highlighting the challenges of live-service game investments.
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