0216 GMT - Investors should be more selective when picking Chinese tech stocks this year, Barclays analysts say in a research note. Government policies to drive economic recovery were a tailwind for Chinese tech stocks in 2025 and drove broader gains, the analysts say. "The consumption stimulus money has now been spent, and structural changes are always difficult to make and results take longer to show up," they say. As a result, there will unlikely be broad-based strong returns for most Chinese ADRs, they note. The analysts reckon that China's EV makers face significant headwinds in 2026 as Beijing cuts back on sales tax incentives and EV penetration tops 50%. Barclays prefers names that have resilient revenue streams such as Tencent and Trip.com, or those with a clear AI story such as Alibaba. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

January 07, 2026 21:16 ET (02:16 GMT)

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