The investment landscape in China is undergoing a radical transformation, exemplified by the remarkable ascent of BYD, a leading player in the new energy sectorAs of February 14, the company achieved a market valuation surpassing 1 trillion yuan, marking its re-entry into the prestigious ‘trillion-yuan club.’ This resurgence not only highlights the buoyant sentiment in the post-Chinese New Year stock market but also signals a significant reevaluation of asset values within the broader Chinese economy.

Industry experts suggest that the frequent appearances of technology companies in this elite group are reflective of the burgeoning new economic forces driving China's growthMoving forward, as more innovative breakthroughs emerge, the long-term value of Chinese assets is poised to receive increased attention and focus.

Currently, the capital market is witnessing an unprecedented excitement surrounding technology stocksBYD's market valuation momentarily crossed the 1 trillion yuan threshold back in June 2022 amidst a wave of enthusiasm for new energy companiesThis time, however, BYD’s rekindled valuation coincides with a broader surge in technology stocks.

Since the beginning of 2025, technology companies in China have reported impressive performance both domestically and abroadOn the Shenzhen Stock Exchange, the computer sector has seen growth of approximately 20%, with several companies such as Qingyun Technology and Youkede doubling their stock pricesMeanwhile, on the Hong Kong Stock Exchange, Alibaba has surged more than 50%, alongside notable gains from firms like Xiaomi and Kuaishou, each climbing over 20%.

The surging valuations of Chinese technology companies are being powered by rapid advancements in emerging industries like artificial intelligence, high-end manufacturing, digital economies, and advanced materials.

For instance, DeepSeek has unveiled a powerful new model that rivals the forthcoming GPT-5, while Yushu Robotics showcased breathtaking handkerchief manipulation during the Spring Festival gala

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Additionally, a breakthrough in the synthesis of graphite into hexagonal diamond has been reported by Chinese scientists, further exemplifying the country’s technological prowess.

In the American stock market, the concept of the "Seven Sisters"—which includes giants such as Apple, Microsoft, and NVIDIA—captures the market's desire for premium technology assetsLikewise, discussions around a comparable grouping for China, dubbed the "Chinese Technology Seven Sisters," are gaining tractionA recent research report by Huatai Securities identifies potential members, including Xiaomi, BYD, SMIC, Alibaba, Tencent, and Meituan, all of which share attributes of innovation and technological advancementEven companies like NetEase, Pinduoduo, ByteDance, Huawei, CATL, and JD.com are being acknowledged as candidates within this elite circle.

From electric vehicles to artificial intelligence, the favored sectors are evolving, yet the capital market's commitment to fostering innovation and investing in the narrative of future growth persists.

The stock market serves as a window into the shifting economic structure and the transformation of drivers of growthThe composition changes within the trillion-yuan club attest to China's ongoing transition from traditional to new economic drivers.

For instance, data from Wind reveals that at the end of 2020, the primary constituents of the trillion-yuan club on the A-share market were predominantly consumer and financial sector companies, such as Kweichow Moutai and Industrial and Commercial Bank of ChinaFast forward to the end of 2021, and CATL had entered the ranks with a valuation of 1.37 trillion yuanBy 2022, China Mobile, a telecommunications service provider, also joined this exclusive group.

In line with the technology stock rally, Hong Kong's market has experienced its own expansion of the trillion-yuan clubAs of mid-February, both Xiaomi and Meituan hit the 1 trillion Hong Kong dollar mark in market value.

Experts emphasize that while historically A-share values were concentrated in finance, energy, and consumer sectors, the rise of tech companies marks a shift toward an "innovation and technology-driven" growth model

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The collaboration between research, academia, and industry is set to deepen, with venture capital now focusing more on long-term corporate growthThis trend is anticipated to further unleash the innovative capabilities of Chinese tech firms.

According to Peter Milliken, the Head of Asia-Pacific Equity Research at Deutsche Bank, China is weaving a comprehensive industrial chain while nurturing specialized industrial clusters, ultimately facilitating a robust collaboration between research and applicationThe nation is continually achieving milestones in high-value-added sectors and developing competitive advantages at an unprecedented pace.

Wang Guizhong, the Director of Big Tech Research at Harvest Fund, also shared insights on China's evolving industrial ecosystem, emphasizing that new types of productivity are becoming increasingly pronounced in terms of vitality, innovation, and competitiveness.

Looking ahead, 2025 might be pivotal for global investors re-evaluating China’s international competitivenessMilliken forecasts that China’s disruptive innovations will reshape industrial competition, leading to the gradual disappearance of the discount in valuation ascribed to Chinese stocks.

Similarly, Morgan Asset Management's Senior Fund Manager, Yang Jingyu, reiterated that DeepSeek's achievements are not mere coincidences but rather logical outcomes aligned with industry developmentHe believes this reinforces China’s status as a crucial hub for global industrial innovation, and more groundbreaking milestones will continue to emerge as the reevaluation of tech company values persists in the near term.

Since the start of February, several foreign financial institutions—including Goldman Sachs, UBS, Deutsche Bank, and Morgan Stanley—have begun reassessing the valuations of Chinese companies, especially those at the forefront of technology.

This optimism goes beyond verbal affirmations; it is manifesting in actions

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