EMQQ Global Performance Overview
- The EMQQ Index fell 7.9% in March. YTD, the index is down 18.0%.
- The FMQQ Index declined 10.2% for the month. YTD, it has declined 18.5%.
- The INQQ Index pulled back 10.9% in March. YTD, it is down 20.9%.
The leading positive contributors to performance for the EMQQ Index in March came from two companies in China: Meituan and JD.com. Both got a boost on news that competitive intensity in China’s fast-growing quick-commerce market is beginning to normalize, while also reporting a set of results that were ahead of expectations.
The two largest detractors for the month were Alibaba and Sea Limited, the leading e-commerce and fintech giant in Southeast Asia. While the former pulled back on weaker-than-expected results, Alibaba continues to make major inroads across its AI/ cloud businesses. More on that below. While Sea Limited also declined for the month, the company did manage to report a robust 38% increase in revenues while net income increased by over 70%, driven by strength in its e-commerce unit. Further details below.
Sources: Bloomberg, Company financials
Emerging Markets Tech News to Know
At a Glance:
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Alibaba & Tencent Join the Agentic AI Wave
- Tencent Strong Results Reinforce AI Momentum
- Sea Limited’s Growth Jumps
- Alibaba AI Business Hits Inflection Point
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Chart of the Month
Alibaba & Tencent Join the Agentic AI Wave
China’s leading internet platforms are rapidly accelerating their push into AI agents, with companies like Tencent and Alibaba embedding agent-based capabilities across their ecosystems. Recent developments highlight how these firms are leveraging large language models—such as Alibaba’s Qwen—to power autonomous agents that can complete tasks, recommend products, and interact directly with users and merchants. This shift reflects a broader move from passive AI tools to active, decision-making systems integrated into commerce, payments, and local services. For China’s tech leaders, AI agents represent a powerful new monetization layer, driving higher engagement, improving conversion rates, and unlocking operational efficiencies. As these capabilities scale, they have the potential to deepen ecosystem stickiness and accelerate revenue growth across advertising, e-commerce, and enterprise services.
Tencent Strong Results Reinforce AI Momentum
Tencent delivered a strong set of quarterly results, with revenue rising ~13% year-over-year to ~RMB194 billion and profit also beating expectations—marking its fifth consecutive quarter of double-digit growth. Driving the upside was continued strength in gaming (with international revenues up >30%) and advertising, where AI-powered targeting lifted revenue ~17%. Importantly, management used the earnings release to signal a major step-up in AI investment, including new model upgrades and agent-based tools embedded in WeChat. Rather than pressuring fundamentals, these investments are being funded by a highly profitable core business, reinforcing Tencent’s ability to simultaneously compound earnings while building long-term AI optionality across its ecosystem.
Sea Limited’s Growth Jumps
Sea Limited delivered another strong quarter, with revenue rising ~38% year-over-year to about $6.9 billion, ahead of expectations, as growth remained broad-based across e-commerce, fintech, and gaming. Shopee continued to lead the way: for full-year 2025, Shopee GMV rose 27% to $127.4 billion, gross orders also increased 27%, and segment revenue climbed 33% to $16.6 billion, reflecting stronger monetization and improving logistics execution. Garena (the company’s gaming unit) also added to the momentum, with fourth-quarter revenue up about 35% to $701 million, supported by deeper paying-user penetration and stronger bookings per user. Meanwhile, SeaMoney’s loan book expanded rapidly, helping reinforce Sea’s evolution into a more balanced, higher-quality earnings story built on operating leverage, scale, and disciplined execution.
Alibaba AI Business Hits Inflection Point
Alibaba Group delivered a quarter that highlights a clear AI-led inflection, with cloud and artificial intelligence emerging as the primary growth engines. Alibaba Cloud grew ~36%, driven by strong demand for AI workloads and increasing enterprise adoption of its Qwen model suite. Management is scaling into this opportunity, targeting up to $100 billion in AI and cloud revenue over time. At the same time, ongoing investments in AI and commerce are beginning to enhance engagement and improve unit economics. These developments reinforce Alibaba’s transition toward a higher-quality, AI-driven business model with expanding long-term monetization potential.
Chart of the Month
Alibaba’s AI + Cloud business is entering a new phase of acceleration. Revenue has grown from just $1 billion in 2016 to an estimated $23 billion in 2025—and is projected to reach $100 billion by 2030, implying a ~5x increase over the next five years. As AI demand scales, Alibaba’s cloud platform is becoming a core infrastructure layer powering enterprise adoption across China’s digital economy. 
Source: Bloomberg, Company Financials