"At the start of 2025, alarms were blaring about the risk of investing in China. A new protectionist administration was taking over in the US at the same time China's domestic real estate market was teetering. A possible US ban on TikTok, the popular social media app, imperiled ByteDance, one of the country's biggest tech companies. American companies seemed to have surged ahead of Chinese rivals in artificial intelligence development."
"Twelve months later, and many of the biggest fears appear to be overblown. The Chinese government has focused on stimulating the economy, leading public companies to significantly increase their buybacks. ByteDance sold a majority stake in its US TikTok operations and is now more valuable than ever, with HSG, the venture capital firm formerly known as Sequoia China, valuing the company at between $350 billion and $370 billion recently."
Hedge funds that invested heavily in China posted substantial gains last year as Chinese equities rallied and select tech companies strengthened. Early 2025 risks — a new protectionist US administration, a fragile Chinese property market, a potential US ban on TikTok, and perceived US lead in artificial intelligence — eased over the year. Chinese policymakers prioritized stimulus and public companies significantly increased buybacks. ByteDance sold a majority stake in its US TikTok operations and secured a valuation of roughly $350–$370 billion. Chinese AI startups like DeepSeek advanced alongside Western peers and Nvidia obtained permission to sell H200 chips to Chinese companies. Bridgewater's China Total Returns fund returned 34.2% and Tekne Capital rose over 50%.
Read at Business Insider
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