China’s Comeback: 4 Quiet Stocks Ready to Make Noise

Chinese music-streaming service Tencent Music launches its IPO on Dec. 12, 2018, in New York City. (Spencer Platt/Getty Images)

While Wall Street’s spotlight has fixated on domestic strength, China has quietly slipped off the radar, and that’s precisely when savvy investors should pay attention. History favors stocks that hold firm or rise while their benchmarks tread water, as they’re often the first to sprint when a fresh rally ensues. Over the last three months, the i Shares China Large-Cap exchange-traded fund (FXI) has climbed 8%, trailing the S&P 500 ’s 13% rally. But if China plays catch-up, pockets of serious upside could emerge. Here are four stealth standouts that deserve a spot on your watchlist.

Tencent Music Entertainment (TME), the largest holding in the KraneShares CSI China internet ETF (KWEB), continues to impress, nearly doubling in 2025 while offering a dividend yield of .8%.

Last week it showed off its relative strength, rising 8%, twice the gain of the ETF. On the technical front, TME broke out from a short cup base with a 15.43 trigger back on May 14, surging 16% after its second consecutive double-digit earnings reaction.

With earnings on deck Tuesday morning, a break above the current bull flag trigger at 22.60 could ignite the next leg higher, with $30 in sight before year end.

Tencent Music Entertainment was trading at $22.30 Monday.

Atour Lifestyle Holdings (ATAT), the Chinese hotel operator, has quietly emerged as a standout in the travel space, up over 30% year to date and sitting just 6% below its 52-week highs. That’s in sharp contrast to peer H World Group ADR, still languishing 25% below its annual peak.

Technically, Atour put in a strong run last September, then carved out a well-rounded cup base that was cleared in February before entering a healthy reset. That consolidation resolved higher with a bull flag breakout above 32.50 in early July. With momentum now back in the driver’s seat, this leader looks on track to reach the 43 level by year end.

Atour Lifestyle was trading at $35.03 Monday.

Kanzhun Ltd. ADR, a leading online recruitment platform in China, is enjoying a standout 2025 with shares up 53% year to date.

The daily chart below reveals a constructive pattern of higher lows over the last year, showcasing a firm, ongoing uptrend. Round number theory has been a key influence, with the $20 level acting as firm resistance in both October and March, until now.

On 8/7, the stock finally broke through with authority, clearing a cup-with-handle pivot at $20.33. With momentum now on its side, a move toward $30 by Q1 2026 looks increasingly plausible.

Kanzhun Ltd. was trading at $21.18 Monday.

Full Truck Alliance Co. (YMM), a digital freight platform often viewed as a proxy for the broader health of China’s economy, is having a relatively muted 2025 so far, up just 4%. However it has put up an impressive 53% gain over the last 12 months.

The weekly chart paints a compelling picture of resilience and technical maturation. The $10 level had been a stubborn ceiling, rejecting price advances five separate times from early 2022 through late 2025.

But that all changed in December, when shares finally punched through. More important it passed the April retest with flying colors, confirming that $10 has flipped from resistance to support. This base-building behavior bodes well, and I believe the stock is charting a path toward $16 by Q1 2026.

Full Truck Alliance was trading at $11.22 Monday.

Write to Doug Busch at douglas.busch@barrons.com.