We recently published a list of the 10 Best Performing Chinese Stocks So Far in 2025. In this article, we are going to take a look at where Wing Yip Food Holdings Group Limited (NASDAQ:WYHG) stands against the other Chinese stocks.

Chinese stocks have rallied in 2025 since the surprising launch of the DeepSeek AI model. The smart and lower-powered LLM AI tool has created a wave in the global AI industry, with the U.S. stock market losing over $1 trillion right after the DeepSeek launch.

Also Read: 10 Chinese Penny Stocks to Buy According to Analysts

China’s Ready to Embrace the Tech Sector

Chinese stocks have continued their momentum weeks after the launch of DeepSeek as China’s President Xi Jinping recently held meetings with Chinese tech and start-up leaders, indicating a more friendly approach to the sector. According to a Bloomberg report, the meeting included Alibaba co-founder Jack Ma and DeepSeek founder Liang Wenfeng. Ma’s presence was the highlight as investors saw it as a positive sign that Chinese officials were ready to embrace the tech sector. Ma has had a history with the Chinese government for speaking out against regulators, therefore, his presence is considered a symbolic gesture.

According to reports, Jinping has given a green signal to tech start-up leaders to remain competitive and ensured that the government would not impose unwarranted fines.

“The decision to call for such a meeting likely indicates the importance of technology innovation and the contribution of private enterprises to the development and growth of China’s economy. We view the emphasis on internet and tech providing valuation multiple support for China’s internet sector,” Citigroup analysts wrote in a research note, as per Bloomberg.

Despite the Chinese economy facing deflationary headwinds and a struggling property market, Hong Kong’s Hang Seng Index has surged over 15% year-to-date, driven by Chinese tech stocks.

Do Chinese tech stocks hold the potential to deliver a full-year rally driven by the AI boom, similar to the rally U.S. tech stocks experienced in 2024? Well, Chinese companies have the potential, and DeepSeek has proven what Chinese tech start-ups are capable of doing. However, China’s economy is in a very different place from the United States, and regulation can be difficult to predict.

A friendly grocery store team stocking shelves with foodservice products.

Our Methodology

We used the Finviz screener to shortlist 20 companies with a market capitalization of over $300 million. We ranked the 10 best-performing Chinese stocks with the highest returns year-to-date in ascending order of the YTD returns, as of February 19. We have also listed the number of hedge funds holding these stocks as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A friendly grocery store team stocking shelves with foodservice products.

Wing Yip Food Holdings Group Limited (NASDAQ:WYHG)

No. of Hedge Fund Holders: N/A

YTD Returns: 69.43%

Wing Yip Food Holdings Group Limited (NASDAQ:WYHG) is a Hong Kong-based holding company that is engaged in the production and distribution of food products, primarily through its subsidiaries. WYHG made its debut on Nasdaq in November 2024, raising over $8.2 million in net proceeds. The company has established distribution channels and a strong position in the food industry, with a stronghold in various Asian markets, and is now aiming for growth in international markets.

Wing Yip Food Holdings Group Limited (NASDAQ:WYHG) has a diversified product line including speciality food items, sauces, seasonings, and packaged goods. The company has direct distribution channels as well as a network of partners including retail stores, restaurants, and wholesalers. With an efficient supply chain, the company’s subsidiaries maintain its dominance as a leading provider in the Asian food sector, supported by traditional culinary products and modern, convenience-driven food trends.

The company’s exposure to growing Asian food markets adds to its growth prospects moving forward. The proceeds from the IPO will also support growth initiatives, including expansion into new markets and improved product offerings. Despite the strong brand presence and expansion plans, Wing Yip Food Holdings Group Limited (NASDAQ:WYHG) faces regulatory and operational risks due to its strong ties to mainland China.

Overall, WYHG ranks 6th on our list of best performing Chinese stocks to buy right now. While we acknowledge the potential of WYHG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WYHG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.