Move over, Tim Cook. Xi Jinping is in the spotlight now as the Chinese stock market takes center stage.

He’s balancing tariffs, keeping tabs on his neighbors, and holding hands with Putin and Modi — all at the same time with deft precision.

(Who knew Xi Jinping could juggle?)

Perhaps his skills are rooted in the 2000-year-old traditions of Chinese acrobatics. Or maybe he’s always dreamed of running away with the circus, and juggling keeps the dream alive.

At any rate, Chinese stocks will induce a childlike sense of shock, awe, and genuine amazement for investors worldwide.

In fact, the show has already begun.

The iShares Large-cap China ETF (FXI) and the KraneShares CSI Chinese Internet ETF (KWEB) are printing three-year highs.

But there’s one stock in particular that's prepared to steal the show — Alibaba (BABA).

By next week, you’ll wish you had this name in your portfolio. Before I go any further, let me first explain why I like Chinese stocks right now.

3 Reasons to Buy China

Chinese equities scream larger-than-life gains, and it all comes down to these three reasons:

1. It’s an emerging market
2. The U.S. dollar is weakening
3. Chinese stocks are breaking out

Let’s look at each one of these a little more closely.

Emerging markets are embarking on an extensive rally. For one thing, less developed areas of the world have far more room to grow than their developed market counterparts.

Take a look at the S&P 500 (SPY) alongside the China ETF (FXI). Both have rallied off their respective 2024 lows.

However, FXI is trading on the wrong side of its 2021 peak, while the S&P 500 is hitting a new all-time high. The differences are stark, but they won’t remain that way for long. 

The weakening dollar is kicking up tailwinds for emerging markets across the board, the second reason I like China. 

JPMorgan analysts cited the declining greenback as a key factor in their intermediate and long-term bullish outlook for South African equities, attributing a lessening need to hedge currency risks as a potential driver of future growth.

Essentially, financial institutions are no longer constrained by emerging market currency risks, allowing them to allocate more capital to invest in emerging market economies.

You can see it in the charts.

Yesterday, the South Africa ETF (EZA) hit a seven-year high. Last week, the Vietnam ETF (VNM) notched a three-year high.

And the Brazil ETF (EWZ) recently reached its highest level year-to-date.

Exciting times are descending upon emerging markets, which leads me to my third and final reason I’m bullish on China….

Chinese Stocks Are Breaking Out

Bloomberg reported that Chinese investors purchased more Alibaba shares last week than any other company listed on the Hang Seng exchange.

Based on my limited fundamental analysis, Alibaba is somewhat like the Amazon of China, but has a much cooler ticker symbol.

(No wonder everyone is buying it!) 

I’m not sure if we can consider last week’s surge in volume as insider buying. Nevertheless, investors scrambling for a stock is constructive, regardless of location.

Unsurprisingly, BABA is breaking out today.

You’ll want to keep an eye on $148. The rally will kick into overdrive above that level as it tears toward the all-time high of $319.

I highly doubt BABA will trade back at its 2020 peak by the end of the year. But I bet it will by the end of next year.

In the meantime, this Chinese tech company is screaming buy.

Emerging markets are rallying with a little help from a weakening U.S. dollar. Chinese stocks are breaking out more broadly. And BABA is attracting investors both domestically and internationally.

Those are quite a few trends converging all at once. But all you need to remember is that BABA is your ticker — and $148 is the level.