ByteDance's valuation has reached $600 billion, making it China's second most valuable internet company. The valuation reflects investor confidence in its three main pillars: Douyin (domestic e-commerce and services anchor), TikTok (global growth engine despite geopolitical risks), and AI through Doubao (emerging growth driver). The company is investing heavily in AI infrastructure and shows no urgency for an IPO, though smaller subsidiaries could potentially be listed separately.

Alibaba shares declined after reporting modest 2% revenue growth and a sharp 57% drop in adjusted EBITA for its December quarter. While the company's AI chatbot Qwen reached 300 million monthly users and cloud intelligence revenue grew 36%, its e-commerce division faced pressure from a price war with competitors, with core e-commerce business lines remaining flat.

PsiBot (Lingchu Intelligence) raised 2 billion yuan ($280M) in angel and Pre-A funding, reflecting China's significant investment in embodied AI. Rather than focusing on flashy robots, PsiBot is positioning itself as a 'small full-stack' provider of practical robotics solutions, data collection systems, and AI training infrastructure for logistics and manipulation tasks. The funding comes amid China's emphasis on AI and robotics deployment outlined in its 15th Five Year Plan, and reflects broader market growth with global humanoid-robot shipments reaching 18,000 units in 2025.

A U.S. congressional committee has sent letters to three small investment banks (D. Boral Capital, Dominari Securities, and Revere Securities) investigating their role in underwriting suspicious Chinese IPOs that allegedly engaged in 'pump-and-dump' schemes, defrauding American investors of $16 billion since 2023. The move reflects a broader U.S. campaign to eliminate fraudulent Chinese listings from Wall Street, with Chinese IPO fundraising dropping significantly to $1.12 billion in 2024.

Multiple China-focused stocks and emerging market ETFs have fallen into deeply oversold territory with exceptionally low RSI readings, potentially setting up for sharp rebounds if risk sentiment improves. The oversold list is dominated by Chinese internet and tech names alongside broader Asian and emerging market exposures, though investors are cautioned that low RSI alone is not a reliable trading signal.

Fourth-quarter earnings season continues this week with major reports from retailers, tech firms, and software giants. Key companies reporting include AST SpaceMobile (Monday), Target and CrowdStrike (Tuesday), Broadcom (Wednesday), and JD.com (Thursday). Investors will focus on AI semiconductor revenue, discretionary spending recovery, and guidance for future growth.

Dingdong agreed to sell its domestic grocery delivery operations to Meituan for $717 million, highlighting intense price wars in China's instant commerce sector. Meanwhile, India blocked a Chinese private equity firm's investment in an Italian company with Indian operations, signaling rising geopolitical protectionism in cross-border M&A deals.

Meituan reported a 15.7 billion yuan ($2.3 billion) loss in Q4 2025 due to intense price competition in China's instant commerce sector with Alibaba and JD.com. While the loss improved from Q3's 18.6 billion yuan, the company expects continued losses in 2026. China's market regulator recently called in major tech companies to address excessive competition. Meituan's stock has lost about half its value over 52 weeks, though the company acquired Dingdong for $717 million to strengthen its grocery delivery segment.

North of South Capital reduced its Vipshop stake by 1.09 million shares ($21.04 million) in Q4, cutting the position from 6.3% to 3.6% of assets. Despite the sale, the fund retained a $40 million stake. Vipshop reported Q3 revenue of $3 billion (up 3.4% YoY) and net income growth of 16.8%, with guidance for up to 5% revenue growth next quarter, suggesting the trim was tactical rather than a loss of confidence.

Despite Full Truck Alliance (YMM) stock falling nearly 20% in Q4 2025, London-based North of South Capital LLP increased its position by 240,446 shares, bringing its total stake to $116.40 million (10.46% of AUM). The fund's confidence appears grounded in the company's operational strength, with Q3 2025 showing 10.8% revenue growth and 22.3% order growth, despite near-term market skepticism around China tech stocks.

Dingdong, one of China's earliest online grocers, is selling its core China business to rival Meituan for $717 million as it struggles to compete against larger e-commerce giants like Alibaba and JD.com in the intense instant commerce sector. The deal represents a consolidation in China's online retail landscape, with Dingdong's stock falling 14% following the announcement. The combined entity will create a significant player in China's grocery delivery market.

East Buy announced plans to build same-day delivery capabilities in its top 10 cities and trial instant commerce fulfillment in Beijing, Shanghai, and Guangzhou, entering the competitive instant commerce market dominated by Alibaba, JD.com, and Meituan. The company returned to profitability in the first half of its fiscal year with revenue growth of 5.7% year-on-year, driven by its private label business which now represents 53% of GMV. Stock rallied 14% on the announcement, though analysts note valuation concerns with a P/S ratio of 5.4.