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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.

(Read: SEC Reviews Bitcoin ETF—the Skyrocketing Cryptocurrency Explained)

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. (Read: Forget Big Tech; Bet on These Overlooked ETFs)

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.

Alipay, their third-party online payment platform, has now become the dominant player in the Chinese online payment market. (Read: Time to Buy Global Low Volatility ETFs)

Last week, the e-commerce giant announced that their fiscal 2018 revenue could grow by 45–49% as rising incomes in China are leading to a surge in online shopping.

The stock, currently ranked Zacks #3 (Hold), is up almost 60% this year.

JD.com (JD - Free Report)

The Chinese online retail giant is the second-largest e-commerce player after Alibaba. They have presence in Indonesia too and are planning to expand into other developing countries this year. Of late, they have been gaining on Alibaba in the world's second-biggest economy.

JD.com, a Zacks Rank #1 (Strong Buy) stock is up more than 52% year-to-date.

Guggenheim China Technology ETF (CQQQ - Free Report)

This ETF provides diversified exposure to the Chinese technology sector. Tencent, Alibaba and NetEase are the top three holdings. 

The product has an expense ratio of 70 basis points and invests in technology companies across the market cap spectrum.

CQQQ currently has a Zacks Rank #2 (Buy) and has risen more than 30% this year.

KraneShares CSI China Internet ETF (KWEB - Free Report)

This ETF holds Chinese Internet companies listed in both the US and Hong Kong. Tencent, Alibaba and JD.Com are its top holdings.

KWEB currently has a Zacks Rank #3  (Hold) and is up almost 40% year-to-date.

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