US Listed Chinese Stocks Gain on Stimulus Plans to Counter US Tariff Risks

U.S.-listed
Chinese stocks

Alibaba Group Holding

(NYSE:
BABA
), JD.com,

Inc

(NASDAQ:
JD
),

PDD Holdings Inc

(NASDAQ:
PDD
),

Baidu, Inc

(NASDAQ:
BIDU
),

NIO Inc

(NYSE:
NIO
),

Li Auto Inc

(NASDAQ:
LI
),

XPeng Inc

(NYSE:
XPEV
) are trading higher Tuesday amid reports indicating China’s stimulus plans to deter potential U.S. tariffs.

Chinese e-commerce juggernaut Alibaba is considered the barometer for China’s tech sector.

Reuters cites familiar sources as saying Chinese authorities plan to issue 3 trillion yuan ($411 billion) in special treasury bonds in 2025, a jump from 2024’s 1 trillion yuan.

Also Read:



Consumer Finance Watchdog Cracks Down on Credit Card Sneaky Fees and False Promises

The stimulus will target potential U.S. tariffs on Chinese imports, which President-elect Donald Trump threatened during his presidential campaign days.

China expects to drive consumption through subsidy programs, equipment upgrades, funding investments in advanced sectors, and more.

China targets a subsidy program allowing consumers to trade in old cars or appliances and subsidize large-scale equipment upgrades.

The stimulus would also fund the construction of railways and airports and build security capacity. A significant portion of the funding will go towards electric vehicles, robotics, semiconductors, and green energy.

The rest of the stimulus will help recapitalize large state banks.

China’s new special treasury debt issuance in 2025 would equate to 2.4% of 2023 gross domestic product (GDP).

China’s November economic growth missed expectations, affecting retail and property sectors.

The National Bureau of Statistics (NBS) announced
that November retail
sales grew 3% year-over-year, down from October’s 4.8% growth and below economists’ forecast of 5.3%.

Fixed-asset investment increased by 3.3% for the year through November, while property investment fell by 10.4%. Industrial production rose 5.4% year-over-year in November, slightly higher than October’s 5.3% growth, and the urban unemployment rate remained steady at 5%.

Investors can gain exposure to Chinese equities through

iShares China Large-Cap ETF

(NYSE:
FXI
) and

KraneShares Trust KraneShares CSI China Internet ETF

(NYSE:
KWEB
).

Price Actions:

At the last check on Tuesday, BABA stock is up 0.38% to $85.46. JD is up 0.02%, BIDU is down 0.62%, NIO is up 3.13%, LI is up 0.99%, and XPEV is up 2.58%.

Also Read:

Photos courtesy: Shutterstock

UNLOCKED: 5 NEW TRADES EVERY WEEK.
Click now to get top trade ideas daily
, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.