By Jared Blikre

Chinese tech stocks have rallied back to a key level, just as the headlines are heating up.

The Invesco China Technology ETF (CQQQ) is pressing into a long-term downward-sloping trend line that starts at its February 2021 peak and captures both the 2025 and 2026 highs.

The ETF is still down nearly 50% from that peak, but a break above the yellow trend line in the chart below would likely generate momentum for the bulls. Still, another technical hurdle looms just overhead: the $60 level around the 2025 high. A rally above that zone could force bearish bets to unwind, potentially leading to a short squeeze.

Invesco China Technology ETF (CQQQ) is at a crossroads.  Yahoo Finance

If the Invesco China Technology ETF rolls over instead, it has minor support near $50 and a slightly deeper support zone around $45.

Trump is set to visit China from Wednesday through Friday, with high-stakes talks with Chinese President Xi Jinping expected to focus on trade, AI, chips, and rare earths. China’s 15th Five-Year Plan also gives the setup a policy tailwind, with Beijing prioritizing tech self-sufficiency, AI, robotics, and advanced manufacturing as core growth drivers.

The Invesco China Technology ETF’s largest holdings include Meituan (MPNGY), PDD Holdings (PDD), Tencent (TCEHY), Baidu (BIDU), Kuaishou (1024.HK), Hua Hong Semiconductor (1347.HK), Horizon Robotics (9660.HK), Hygon (688041.SS), Cambricon (688256.SS), and SenseTime (0020.HK).

But the ETF looks different from the more familiar China internet trade. The KraneShares CSI China Internet ETF (KWEB) is still down roughly 70% from its 2021 peak and has not looked as strong technically. KWEB also includes some large tech-adjacent companies, such as Alibaba (BABA) and NetEase (NTES), that are now classified as consumer discretionary instead of technology.

For now, the big level is clear: Above $60, and China tech’s comeback starts to look more durable. Below it, the group is still fighting the same downtrend that has defined the trade since 2021.

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.

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