Facebook (FB – Free Report) , Apple (AAPL – Free Report) , Amazon (AMZN – Free Report) , Netflix (NFLX – Free Report) and Google-Alphabet (GOOGL – Free Report) —popularly know as the FAANGs—have been on a tear this year. But some of the Chinese tech giants like Alibaba (BABA – Free Report) , Tencent (TCEHY – Free Report) , JD.com (JD – Free Report) and Weibo (WB – Free Report) , have delivered even better returns.

Of these, Tencent and Alibaba are among the world’s ten largest companies. China is home to 1.4 billion people. The middle class in the country is expanding and their incomes are rising fast. Due to restrictions imposed on foreign companies’ operations in the country, domestic tech companies flourish in this huge market.

Facebook, YouTube and Twitter are banned in China, Google and Uber left and Amazon has failed to make much headway, while their Chinese rivals’ market values and clout have been growing rapidly.

Unlike many US tech giants, Chinese tech companies have diversified business models and are not overly reliant on advertising revenues, suggesting significant growth potential in the coming years.

Tencent Holdings (TCEHY – Free Report)

Tencent is an investment holding company that provides internet value-added services and online advertising services in Mainland China, Hong Kong and internationally. The stock is listed in Hong Kong. 

Their social networking platforms–Weixin/WeChat and QQ–have massive user base. Their cloud computing and payment revenues have also been rising rapidly.

Tencent is now the largest public company in Asia. The stock, currently ranked Zacks #3 (Hold), has risen almost 43% this year.

Alibaba Group (BABA – Free Report)

Alibaba Group operates China’s largest e-commerce platforms Taobao and Tmall. They have also been growing their new businesses including cloud computing, digital media and entertainment.