The China Rally No One Saw Coming (Except David Tepper)

Just a few months ago, billionaire investor David Tepper made a bold call: Buy everything in China. He wasn’t just talking about a few stocks — he meant everything. ETFs, futures, equities — you name it.

Tepper’s reasoning? The Chinese government had just unleashed massive stimulus measures, including rate cuts, buyback encouragement, and direct intervention to prop up markets. 

The last time Tepper made a call like this was near the bottom of the 2009 financial crisis, which led to what we now call the "Tepper Rally" — a decade-long bull run in U.S. equities.

And so far? China has been one of the best-performing markets of 2025. The KraneShares CSI China Internet ETF (NYSEARCA: KWEB), sort of like the Chinese version of QQQ, is up over 24% YTD. Meanwhile, the actual QQQ, is down over 6% YTD:

So Tepper’s been right so far. Let’s take a look at one of his holdings, which is also A-rated in our Zen Ratings system:

JD.com (JD): The Quiet Winner?

One name that’s A-rated in our system and looks well-positioned for this rally is JD.com (NASDAQ: JD) — China’s second-largest e-commerce company.

Here’s why:

• A China Recovery Play – As consumer sentiment improves, JD is a direct beneficiary. Its logistics network gives it an advantage in delivering goods quickly, and it’s been aggressively expanding its third-party marketplace to compete with Alibaba.
• Government Support – The Chinese government has been clear: it wants its economy to grow. Unlike in past years where regulators cracked down on tech, they’re now encouraging stock buybacks, growth initiatives, and financial stability — things that could reignite the bull case for Chinese stocks.
• Not Just Retail – JD is more than just an online store. It owns a dominant logistics network, a healthcare business, and a growing fintech segment. These give it multiple ways to grow beyond just e-commerce.
• Valuation Is Insanely Cheap – While U.S. e-commerce stocks have seen their valuations explode higher with AI hype, JD is sitting at near-historic lows. Tepper’s bet on China is partly about this valuation disconnect.

Speaking of value, JD’s Value Component Grade is currently scoring a B in our system … reflecting strong cash flow yield, free cash flow to price, price-to-earnings growth (PEG) ratio, and other metrics. 

Even more impressive? It also scores an A in growth. This is a huge part of the appeal in China … Not only are the tech companies cheap, but they continue to grow EPS, improve profit margins, and more. 

In fact, most value investors don’t focus enough on growth. Value investments often go wrong because investors focus on the wrong metrics, or get stuck in value traps that aren’t growing (more on that in our recent piece here). 

With China you have the best of both worlds: growth at a reasonable price.

Why This Could Just Be the Beginning

The U.S. market has been on fire for years — but China has been left behind … and many investors still do not trust this rally. But, with policy turning favorable, capital is starting to flow back into these names.

David Tepper doesn’t make these calls often. When he does, he’s usually right. And if China’s rally follows anything close to what we saw in the U.S. after 2009, this could be the start of something big.

JD is A-rated in our system. Keep an eye on it.

Click here to add it to your watchlist.

What to Do Next?

• 8 Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return > 
• 4 Step Process to Find More 100%+ Stock Winners >

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