Goldman Sachs released a research report stating that since the beginning of 2025, Chinese AI-related listed companies have created a market value of nearly $5 trillion through rising stock prices and IPO. AI stocks now account for 42% of the total market value and 57% of trading volume in both A-shares and H-shares, and AI has changed the landscape of the Chinese stock market.

This line indicates that the global AI duopoly narrative is attracting attention from investors, which consists of two major ecosystems: one dominated by the United States and its main trading partners, and the other led by China. China has always been a key exporter in the global AI supply chain, holding over 50% of the global market share in areas such as rare earth production/refinement, power equipment, PCB, optical modules, and mature process semiconductors. With the development of domestic AI technology, China has gradually established an internal circular AI value chain that covers advanced semiconductors, open-source language models with significant influence, and the application layer, and is poised to compete with the US-centered AI ecosystem. The report estimates that Chinese AI companies have a market value of approximately $7.6 trillion based on their AI business exposure, accounting for about 10% of the global AI related market value and profits, about 14% of capital expenditures, and about 24% of revenue.

This line divides China's AI stocks into two main categories: First, there are over 360 export-oriented enterprises with a combined market value of about 1.7 trillion US dollars, and their overseas revenue accounts for more than 40%. These companies mostly belong to the AI infrastructure and power sectors and can be seen as agents of the Western AI capital expenditure boom. Second, there are over 880 enterprises that mainly serve domestic demand, with a combined market value of about 3.2 trillion US dollars and overseas revenue accounting for less than 10%. They have benefited from increased capital expenditure by local large-scale cloud service providers AI, a surge in application demand, and policy initiatives to promote technological autonomy. The export-oriented AI stocks achieved a cumulative return of 126% from early 2025 to June 2026, outperforming their domestic-demand counterparts by about 84 percentage points. However, since the global AI adjustments at the end of June, they have fallen by 23% from their high levels, with their relative advantage narrowing by about 10 percentage points.

In terms of investment strategy, despite acknowledging geopolitical and trade policy risks, the bank remains optimistic about 20 Chinese AI export leaders, with an average overseas revenue contribution of 66% in the first half of 2026. According to market expectations, these companies are expected to achieve a compound annual growth rate of earnings per share of 38% over the next two years, and a price-earnings ratio of 21 times in 2027. The bank has also selected 20 domestic AI champions, with over 90% of their sales coming from the mainland. These companies are expected to have a compound annual earnings growth rate of 33% and a forward price-earnings ratio of 23 times. Additionally, the bank has updated its “China Select AI Portfolio” to include 50 stocks covering five sectors: power, semiconductors, infrastructure, models, and applications. The portfolio currently has a price-earnings ratio of 31 times for the next 12 months, with market expectations of a 46% earnings growth over the next two years, and approximately 58% of the revenue being directly related to AI business. For more details, please refer to the table below.

This reminder indicates that there are still significant gaps between the Sino-US AI value chains in terms of market value, profitability, and product pricing. The bottlenecks in local supply chains, as well as the exponential growth characteristics of AI technology, mean that for China to achieve complete AI self-sufficiency, it is still a long and challenging journey.

After the update by Goldman Sachs, the list of 50 shares in the "China Select AI Portfolio" is as follows:

Electricity

• Weichai (02338. HK ) | Buy (Confidently on the buy list)
• Yingliu Shares (603308. SH ) | Buy
• CST (002518. SZ ) | Buy
• CATL (03750. HK ) | Buy
• Siyuan Electric (002028. SZ ) | Buy
• Hongfa Shares (600885. SH ) | Buy

Semiconductors

• Shengyi Technology (600183. SH ) | Buy (Confidently on the buy list)
• Anji Technology (688019. SH ) | Buy
• Tianyue Advanced (02631. HK ) | Neutral
• SMIC (00981. HK ) | Buy
• Hua Hong Hong Li (01347. HK ) | Buy
• Coreway Semiconductor Co., Ltd. (688521. SH ) | Buy
• TianDay Zhixin (09903. HK ) | Buy
• Biren Technology (06082. HK ) | Buy
• Cambrian (688256. SH ) | Buy
• Giangxin Technology (688825. SH ) | Buy
• GigaDevice Innovation (03986. HK ) | Buy
• Lanqi Technology (06809. HK ) | Buy
• Beifang Huachuang (002371. SZ ) | Buy
• Zhongwei Company (688012. SH ) | Buy
• Huahai Qingke (688120. SH ) | Neutral
• InnoSaike (02577. HK ) | Buy
• Changdian Technology (600584. SH ) | Neutral
• BGI Genomics (301269. SZ ) | Neutral

Infrastructure

• Inveco (002837. SZ ) | Buy
• Lixun Precision (02475. HK ) | Buy
• Runze Technology (300442. SZ ) | Buy
• Kingsoft Cloud (03896. HK ) | Buy
• Zhongji Xuchuang (03308. HK ) | Buy
• New Yisheng (300502. SZ ) | Buy
• Tianfu Communication (300394. SZ ) | Buy
• Shennan Circuit (002916. SZ ) | Buy
• Shanghai Electric Group Co., Ltd. (002463. SZ ) | Buy
• Shenghong (02476. HK ) | Buy
• GIGABYTE Technology (601138. SH ) | Buy

AI Large Models

• Zhipu (002513. HK ) | Buy
• Minimax-W (00100. HK ) | Buy
• SenseTime-W (00020. HK) | Neutral

Application ( AI + )

• Alibaba (09988. HK ) | Buy
• Tencent (00700. HK ) | Buy
• WuXi AppTec (02359. HK ) | Buy
• Cailaiying (06821. HK ) | Buy
• Hang Seng Electronics (600570. SH ) | Buy

Application (Entity)

• BYD (01211. HK ) | Buy (Confidently on the buy list)
• Hesai-W (02525. HK ) | Buy
• Horizon-W (09660. HK ) | Buy
• Lenovo Group (00992. HK ) | Buy
• Sanhua Zhikong (02050. HK ) | Buy
• Lingzhi Manufacturing (01688. HK ) | Buy
• Double Ring Transmission (002472. SZ ) | Buy

The stocks that were removed include Kuaishou-W (01024. HK), Pony.ai-W (02026. HK), Xpeng-W (09868. HK), Xiaomi-W (01810. HK), Han's Laser (002008. SZ), WanGuo Data- SW (09698. HK), Century Internet ( VNET.US), Muxi Shares (688802. SH), etc.

(da /U) (Hong Kong stock quotes are delayed by at least 15 minutes. Short selling data is as of 16:25 on 2026-10-12. A-share quotes are delayed by at least 15 minutes. US stock quotes are real-time streaming quotes; OTC market stocks are excluded, with data delayed by at least 15 minutes.)