Chinese Stock Charts Reach a Turning Point. What to Watch. — Barrons.com

Dow Jones Newswires

By Doug Busch

Investors often look to January for clues about institutional intent, and this year's opening sent a notable signal in China.

On the first trading day of 2026, the iShares China Large-Cap ETF rallied 4%, its strongest advance since mid-April amid heavy volume. The gap completed a bullish island reversal following the Dec. 16 gap down. It also pushed the FXI ETF back above a bearish head-and-shoulders formation. That shift is notable given persistent geopolitical and economic concerns. Just as importantly, the market's failure to extend losses after the sharp 7.5% weekly selloff in early October suggests downside momentum has been exhausted. From a technical standpoint, the setup is beginning to favor selective risk-taking. Here are three individual stocks that stand out.

Alibaba Group, the second-largest holding in the FXI, exerts significant influence on the broader China trade. The stock is trading roughly 22% below its recent 52-week high and is down about 17% over the past month. In the context of a 79% gain over the past year, the pullback appears orderly and brings shares back into a more attractive entry zone for investors with longer-term horizons.

The recent bout of weakness began with a bearish shooting-star candle on Oct. 2, followed by a 15% decline the next week. That slide carried the shares back toward a prior cup-base breakout near $150/share, where the stock is now trading. Notably, the depth of that pattern round number theory emerged with support near the very round $100 level in early April. On Jan. 2, the stock rebounded more than 6%, breaking out of a bullish falling-wedge formation. Some slight weakness could follow with the completion of a bearish evening-star pattern on Jan. 6. A potential entry near $147 is in an area that would fill the opening gap of 2026. If the setup holds, the shares could work back toward $190 by mid-2026, implying upside of roughly 29% from current levels. The bullish thesis remains intact as long as the stock holds above $137.

Alibaba Group closed at $146.75 Wednesday.

NetEase, an online gaming and e-commerce company, has delivered a solid 56% gain over the past year. The shares currently trade about 12% below their Sept. 17 peak and have dropped nine of the past 16 weeks, setting up a potential area for bulls to step in and defend.

The stock has clearly outperformed the FXI since the second quarter of 2025, as seen on the ratio chart below, and has been digesting those gains since. It is now retesting its breakout from a bullish inverse head-and-shoulders pattern at $140, which coincides with the 21-day exponential moving average. That level also aligns with a former double-bottom-with-handle breakout from Sept. 8, reinforcing its significance. An entry near this area makes sense, with a potential move toward $170 in the second half of the year, roughly 21% upside from current levels. The bullish thesis remains intact above $133.

NetEase closed at $141.55 Wednesday.

Hotel operator H World Group is higher by 60% since the start of 2025 and carries a dividend yield of 3.5%. It has moved higher 16 of the last 22 weeks and added another 5% this week already. It is always good to see peers doing well and Atour Lifestyle Holdings is one example.

Since August, the stock has clearly outperformed the FXI and that relative strength appears poised to continue. The uptrend has been supported by strong volume, with the stock consistently respecting its 21-day exponential moving average. Earlier, it broke above a double-bottom with handle pivot near $35 in August and a bull flag in October. More recently, the shares cleared another bull flag pivot at $49, setting the stage for a potential move toward $60, about 20% upside from current levels. The bullish case remains intact above $47.

H World Group closed at $49.80 Wednesday.

With selective Chinese stocks showing technical resilience, 2026 looks set to reward disciplined investors who focus on quality names and relative strength in the region.

Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Investors Should Be More Selective With Chinese Tech Stocks in 2026 — Market Talk

Dow Jones Newswires

Investors should be more selective when picking Chinese tech stocks this year, Barclays analysts say in a research note. Government policies to drive economic recovery were a tailwind for Chinese tech stocks in 2025 and drove broader gains, the analysts say. "The consumption stimulus money has now been spent, and structural changes are always difficult to make and results take longer to show up," they say. As a result, there will unlikely be broad-based strong returns for most Chinese ADRs, they note. The analysts reckon that China's EV makers face significant headwinds in 2026 as Beijing cuts back on sales tax incentives and EV penetration tops 50%. Barclays prefers names that have resilient revenue streams such as Tencent and Trip.com, or those with a clear AI story such as Alibaba. (sherry.qin@wsj.com)

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Eli Lilly and Intel lead market cap stock movers on Wednesday

Investing.com

NovaBay Pharmaceuticals

-32.16%

Alphabet-A

-1.16%

Wednesday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Eli Lilly and Intel are rallying, while others like Western Digital and Hecla Mining are falling. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers (Market Cap:$200B and above)

Eli Lilly And Co (LLY); Eli Lilly & Co. (LLY) Nears Deal for Ventyx Biosciences (VTYX) - WSJ: +3.67%
Google Inc (GOOGL): +1.69%
JP Morgan Chase (JPM); Wolfe Research downgrades JPMorgan stock rating on expected slower EPS growth: -2.8%
Lam Research Corp (LRCX): -2.31%
Facebook Inc (META): -2.28%
Adv Micro Device (: -1.83%
Alibaba-exch (BABA); Freedom Capital Markets downgrades Alibaba stock rating amid rising costs: -2.19%

Large-Cap Stock Movers (Market Cap:$10B-$200B)

Intel Corp (INTC); Mobileye to acquire humanoid robotics firm Mentee for $900 million: +10.89%
Regencell Bioscience Holdings (RGC): +25.79%
First Solar Inc (FSLR): -9.27%
Hecla Mining Comp (HL): -9.5%
Western Digital (WDC): -8.41%
Seagate Technology (STX): -7.64%
New Providence Acquisition Corp N (ASTS); Scotiabank downgrades AST Spacemobile stock on valuation concerns: -5.54%
CoStar Group (CSGP); CoStar Group sets financial targets, announces $1.5 billion buyback: -4.48%

Mid-Cap Stock Movers (Market Cap:$2B-$10B)

Crinetics Pharmaceuticals Inc (CRNX); Crinetics Pharmaceuticals prices public offering at $45.95 per share: +15.66%
Navan Inc (NAVN): +7.53%
Pbf Energy Inc (PBF): +5.62%
Frontline Ltd Ordinary Shares (FRO): +6.9%
Compass (COMP); Compass announces proposed $750 million convertible notes offering: +6.14%
CF Acquisition Corp VI (RUMBW): +9.07%
Skyworks Solutions Inc (SWKS): -10.97%
Arrowhead Research Corp (ARWR); Arrowhead Pharmaceuticals plans to offer $700 million in securities: -6.89%
ViaSat (VSAT): -4.81%
Fermi America LLC (FRMI): -10.16%

Small-Cap Stock Movers (Market Cap:$300M-$2B)

Monte Rosa Therapeutics (GLUE); Monte Rosa to present interim results for NEK7-directed MGD: +54.28%
Ventyx Biosciences (VTYX); Eli Lilly-Ventyx Deal Could Come Wednesday, Sources Say -- WSJ: +37.31%
Neumora Therapeutics (NMRA): +31.87%
NovaBay Pharmaceuticals Inc (NBY): +19.28%
AXT Inc (AXTI): +18.84%
Erasca (ERAS); Piper Sandler initiates Erasca stock with Overweight rating, $5 price target: +16.25%
Immuneering (IMRX): +16.82%
Realogy Holdings (HOUS); Compass announces proposed $750 million convertible notes offering: +13.91%
MBX Biosciences (MBX); UBS initiates coverage on MBX Biosciences stock with Buy rating: +14.91%
ASTX NYSE (ASTX): -0.93%

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China's Large-Cap Names Expected to Outperform on Policy, AI Tailwinds — Market Talk

Dow Jones Newswires

Goldman Sachs expects China's 10 large cap private enterprises to perform well in 2026 and beyond, thanks to an easing regulatory stance toward the private sector and breakthroughs in AI. These companies, namely Tencent, Alibaba, CATL, Xiaomi, BYD, Meituan, NetEase, Midea, Hengrui and Trip.com, are seen to further increase their dominance in China's stock market, similar to the Magnificent 7 stocks in the U.S. The group, dubbed the Chinese Prominent 10, is forecast to deliver earnings growth of 13% on a compound annual basis in 2026-2027. GS also sees scope for further global market-share gains by Chinese companies, citing export strength. About half of the Chinese Prominent 10 are well positioned to benefit, given their strong balance sheets, cash flows, scale advantages and leading technologies, they say. (jason.chau@wsj.com)

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Softbank Group: BTIG initiates with Buy on AI, robotics prospects

Investing.com

Investing.com-- BTIG initiated coverage of SoftBank Group Corp. (TYO:9984) with a Buy rating, saying the Japanese investment firm was uniquely positioned to benefit from the convergence of artificial intelligence and robotics.

The brokerage set a price target of 5,400 yen, implying a 22% upside from recent levels.

BTIG said SoftBank had a long track record of identifying major technology shifts early, pointing to past investments such as Alibaba Group (NYSE:BABA), Yahoo and Arm Holdings (NASDAQ:ARM). It said this history supported confidence in the company’s ability to navigate the next phase of innovation centered on AI.

The note highlighted SoftBank’s large stake in Arm as a core asset underpinning its AI strategy, given the chip designer’s role in designing processors across smartphones, data centers and emerging AI workloads. It also pointed to SoftBank’s sizable investment in OpenAI and the recent acquisition of Ampere as strengthening its exposure to both AI software and hardware.

BTIG said SoftBank had increasingly focused on what it called “Physical AI,” combining artificial intelligence with robotics. It cited the creation of a centralized robotics unit, Robo HD, and a growing portfolio of robotics assets as evidence of this push. The firm said this approach differentiated SoftBank from other technology investors.

The brokerage added that SoftBank’s portfolio scale and diversification helped absorb losses from past missteps, such as WeWork, without undermining the broader investment case. It said this structure reduced volatility compared with more concentrated investment vehicles.

BTIG said the discount at which SoftBank’s shares traded relative to net asset value had narrowed in recent years, reflecting improved portfolio construction and greater control over key assets. It said further discount compression could support share price gains if execution on AI and robotics continued.

Softbank invested aggressively across the AI sector in the past three years, as CEO Masayoshi Son outlined an increased focus on the emerging technology. The tech conglomerate has benefited from its AI investments, especially as optimism over the technology drove up tech valuations.

Softbank recently completed a $41 billion investment in OpenAI, after Son flagged an “all in” bet on the AI startup. But some concerns over Softbank’s exposure to OpenAI have emerged in recent months, especially as investors questioned whether OpenAI will be able to meet its ambitious spending commitments.

BTIG analysts also flagged a potential downside scenario for Softbank if OpenAI goes bankrupt, which would render the Japanese conglomerate’s investment in the firm worthless.

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Micron and Baidu among market cap stock movers on Friday

Investing.com

Vicor

+0.85%

Aimei Health Technology

Lattice Semiconductor

-1.77%

Friday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Micron Tech and Baidu are rallying, while stocks like Applovin and Salesforce Com are falling. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers (Market Cap:$200 billion USD or higher)

Micron Tech (MU) +7.56%
Lam Research Corp (LRCX) +6.13%
Adv Micro Device (AMD) +3.57%
Applied Matls Inc (AMAT) +3.88%
Alibaba-exch (BABA) +5.18%
Applovin (APP) -6.09%
Avago Technologies (AVGO) +2.42%
Nvidia Corp (NVDA) +2.09%
Caterpillar (CAT) +2.45%
Salesforce Com (CRM) -4.07%

Large-Cap Stock Movers (Market Cap:$10-$200 billion USD)

Baidu-Exch (BIDU) +12.15%
SanDisk Corp-Exch (SNDK) +11.42%
Bloom Energy Corp (BE) +8.08%
GS Acquisition A (VRT); Barclays upgrades Vertiv stock to Overweight on attractive entry point +7.4%
Yandex (NBIS) +6.5%
Western Digital (WDC) +6.5%
Lattice semiconductor (LSCC) +6.27%
Intel Corp (INTC) +5.77%
Teradyne Inc (TER) +5.14%
Astera Labs (ALAB) +4.73%

Mid-Cap Stock Movers (Market Cap:$2-$10 billion USD)

ACM Research Inc (ACMR) +9.7%
Fluence Energy (FLNC) +9.45%
Applied Opt (AAOI) +8.2%
Camtek Ltd (CAMT) +7.87%
Hut 8 Mining PK (HUT) +7.64%
Vicor Corp (VICR) +7.38%
Nuscale Power (SMR) +7.06%
Amkor Technology (AMKR) +5.67%
Corcept Therapeutics (CORT) +6.03%
Plug Power (PLUG) +12.44%

Small-Cap Stock Movers (Market Cap:$300 million -$2 billion USD)

Ironwood Pharmaceuticals (IRWD); Ironwood forecasts 2026 LINZESS sales to exceed $1.1 billion +40.65%
Flame Acquisition (SOC) +19.4%
PepGen (PEPG) +18.43%
Aimei Health Tech (AFJK) +17.17%
Diginex Inc (DGNX) +15.11%
MUU (MUU) +14.64%
CMI Acquisition LLC (SKYT) +13.75%
TECO Energy Inc-Exch (TE) +13.47%
SGOCO Group (TROO) +11.88%
Starfighters Space (FJET) -15.41%

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Hong Kong Stocks Log Best Year Since 2017 as AI Boom Fuels Tech Rally

Dow Jones Newswires

By Sherry Qin and Tracy Qu

Hong Kong stocks ended 2025 with a second consecutive annual gain, posting their best performance since 2017 in percentage terms, thanks to a tech rally fueled by artificial intelligence.

The city's benchmark Hang Seng Index finished the year up 28%, making it one of Asia's best performing markets.

In Mainland China, the benchmark Shanghai Composite Index rose 18% for the year, marking its strongest performance since 2019, after reaching its highest closing level in a decade in August. The Shenzhen Composite Index 29%, while the tech-heavy ChiNext Price Index surged 50%.

China's advances in artificial intelligence, its continued push for technological self-reliance and resilience in global trade have helped boost investor confidence, easing concerns over weak domestic demand and persistent deflation.

China's goods trade surplus topped $1 trillion for the first time in the year through November, underscoring the strength of its manufacturing base despite President Trump's steep tariffs on Chinese goods.

Investor sentiment was further buoyed by a trade truce reached in October following the first face-to-face meeting in six years between President Trump and Chinese leader Xi Jinping.

"A one-year trade truce--albeit temporary--is positive for sentiment as it reduces concerns around the uninvestability" of Hong Kong and China stocks, Nomura analysts said in a research note.

Despite lingering geopolitical uncertainty, Chinese tech stocks have shone this year since the so-called "DeepSeek moment" in January, when the Chinese startup released a large language model seen as a rival to OpenAI's ChatGPT. Beijing has since made technological self-sufficiency a priority in its next five-year plan beginning in 2026, further fueling investor enthusiasm surrounding artificial intelligence.

"AI has changed the game for Chinese tech equities," Goldman Sachs analysts said in a recent note.

Alibaba Group and Tencent Holdings, widely seen as proxies for China's AI development, rose 73% and 43.65%, respectively. Baidu, which operates the AI chatbot Ernie Bot, gained 59% over the year.

Trade relations between the two countries remain strained as Beijing's top cybersecurity regulator earlier in the year urged big tech companies not to buy Nvidia's chips. Chinese chipmakers have emerged as major beneficiaries of that development.

Shares of SMIC, China's largest contract chip maker, more than doubled in Hong Kong this year. Moore Threads and MetaX, two Chinese AI chip startups that made blockbuster market debuts earlier this month, ended the year up more than 400% from their listing prices.

The AI frenzy has also driven a fresh wave of listings, spanning companies involved in large language models, robotics and biotechnology. Hong Kong reclaimed the top spot in the global IPO market for the first time since 2019, according to a recent KPMG report.

"We expect this upward trend to continue into 2026," said KPMG China's Paul Lau. "In particular, the pace of AI-related listings is poised to accelerate as the technology matures and is adopted more widely across various industries."

Chinese AI model developers MiniMax and Zhipu have already secured IPO slots for January 2026.

Still, risks remain. China Vanke's recent struggles, including a near-default and request for debt extensions, have renewed concerns that the country's prolonged property downturn has yet to bottom out. Hong Kong's Hang Seng Mainland Properties Index ended the year up 5.2%, lagging the broader market.

As startups rush to go public, artificial intelligence is set to remain a dominant theme for Chinese and Hong Kong markets in 2026. Analysts say a sustained rally will also hinge on whether China can revive domestic demand and stabilize its property sector.

After two consecutive years of positive returns, China has shown global investors that it remains investible, with a slow bull market likely in the making, the Goldman analysts said.

Write to Sherry Qin at sherry.qin@wsj.com and Tracy Qu at tracy.qu@wsj.com

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