Mainland China’s Top Performing Stocks in the First Half of 2025

Mainland China’s Top Performing Stocks in the First Half of 2025

Mainland China investors have been closely monitoring the performance of U.S. stocks, while also expressing disappointment in the lackluster performance of stocks in China. Despite clear macroeconomic differences, there were several Chinese stocks in the first half of the year that saw significant gains, including some artificial intelligence companies. One notable example is Foxconn Industrial Internet, the top performer in the CSI 300 index, which tracks the largest names on the Shanghai and Shenzhen stock exchanges. This Apple supplier saw a remarkable 81% increase in the first six months of the year.

Foxconn Industrial Internet is listed in Shanghai and is a key iPhone casing supplier. Analysts at Bank of America Securities have a buy rating on the stock and have raised its price objective to 33 yuan ($4.54). They anticipate a better iPhone shipment cycle in the coming years, which is expected to drive strong casing sales and support FII’s margin and earnings. Additionally, the company’s involvement in AI servers is seen as a positive long-term factor, with booming demand and faster GPU platform upgrades. BofA expects 3% and 6% growth in iPhone shipments for this year and the next.

Avary Holding

Another top performer in the CSI 300 index was Avary Holding, a company based in Shenzhen that saw an 81% jump in the first half of the year. Avary Holding is expected to benefit from the growing demand for artificial intelligence in mobile phones and PCs. The company’s strong position in high-density interconnect circuit boards and flexible printed circuit fields puts it in a favorable position to capitalize on these trends. In addition, Avary Holding has expanded into new domains such as automobiles and servers, strengthening its collaborations with industry leaders and acquiring new clients.

Foreign institutional shareholders such as Standard Chartered Bank, HSBC, and JPMorgan have shown interest in Avary Holding, further boosting investor confidence in the company. Its latest earnings report in mid-May was well-received, with analysts at Huatai giving the stock a buy rating based on the company’s growth prospects in AI-related industries.

Zhongji Innolight

Zhongji Innolight, ranking third in CSI 300 performance in the first half, climbed by 70%, making it another top-performing stock in mainland China. Nomura analysts have given Zhongji Innolight a buy rating after meeting with the optical communication company in late June. The company’s focus on generative AI training and inference is expected to drive infrastructure demand and benefit global leaders in the industry, including Innolight.

According to Nomura analysts, Zhongji Innolight is well-positioned to maintain its leading position in the global optical transceiver market due to its technology-focused management team, strong execution power, and solid relationships with top AI infrastructure customers worldwide. The company’s consistent performance and strategic partnerships have contributed to its success in the first half of the year.

Overall, the mainland China stock market has faced challenges in recent years due to slower economic growth and uncertainty about future earnings. The CSI 300 index has seen a slight decline year-to-date, in contrast to the Nasdaq Composite’s significant gain in the U.S. Despite these challenges, there are notable success stories like Foxconn Industrial Internet, Avary Holding, and Zhongji Innolight, which have outperformed expectations and demonstrated the growth potential of Chinese stocks in the first half of 2025.


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