On September 24, 2024, China’s stock market enjoyed a rally not seen in decades. Fast-forward two months later, and Trump’s return to the White House changes China’s fortunes. The country is bracing for severe tariffs that would further hurt China’s export market.
Bearishness is so severe that Baidu (BIDU), which rallied from around $80 to over $115, closed at $84.30. The company joined Meta Platforms (META) in making AI-integrated smart glasses. Neither the AI development nor the augmented reality headset development helped BIDU stock.
In e-commerce, JD could give up all of its September – October rally. Alibaba (BABA) peaked at over $115 but closed on Wednesday at $92.00. Investors bet instead of neighboring Sea Ltd. (SE). SE stock gained nearly 10% after posting an EPS of $0.24. Revenue grew by 30.8% Y/Y to $4.3 billion.
SE stock is a long-term investment. The firm reported solid EPS growth of 100%. In addition, it reported revenue from financial services exceeding that of its gaming division.
Your Takeaway
In the last four years, the U.S. issued export restrictions in the semiconductor market. Chinese firms likely avoided those trade restrictions by buying through a third party. Once the U.S. announces tariffs, watch out for Chinese companies struggling even more in the second half of 2025.
