Is China Investable Again? 2 Stocks Soaring as Tensions Ease

Group 1: Market Overview - The U.S. and China are showing signs of improved trade relations, with both sides agreeing to negotiate for mutual benefit, reminiscent of the Oasis reunion [2][3] - Major stock indices in the U.S. and Europe, including the German DAX and the U.K.'s FTSE 100, are reaching new highs, while the Shanghai Composite Index is also showing positive movement, closing above 3,500 for the first time since 2021 [3] Group 2: Company Insights - JD.com - JD.com is positioning itself as the "Amazon of China," launching new business segments like JD Food Delivery to enhance revenue streams and improve last-mile delivery efficiency [6][8] - JD.com reported Q1 earnings of RMB 301.1 billion (approximately $41.5 billion), a 15.8% year-over-year increase, with diluted EPS rising to RMB 3.59 ($0.50) from RMB 2.25 [10] - The New Businesses segment of JD.com is growing faster than the JD Retail segment, with an 18.1% increase compared to 16.3%, indicating rising demand for these services [10] Group 3: Company Insights - Baidu - Baidu aims to be the "Google of China," with its primary revenue driver being search, while also expanding into AI through ventures like AI Cloud and Apollo Go [12] - The AI Cloud segment reported a 42% year-over-year revenue growth in Q1 2025, significantly outpacing the 7% growth in Baidu Core [13] - Apollo Go has provided over 1.4 million rides in Q1, marking a 75% year-over-year increase, and has recently obtained a testing license for operations in Hong Kong [13]