The Chinese stock market has been having a rough ride as of late, but for many investors, this is an unmissable opportunity. Covid hit the global economy hard, but China’s most recent Evergrande crisis could see further downside to even the best Chinese stocks.
As we await the outcome of Evergrande officially defaulting on its debt, now is the best time to make a list of the best Chinese stocks to buy. For the keen investor, this could be the greatest sale of all time.
Let’s take a closer look at the 5 best Chinese stocks to buy now.
Table of Contents
Alibaba (BABA)
The Chinese e-commerce giant Alibaba has had a rough ride over the last couple of months. After unfortunate quarterly results, the company lost almost a quarter of its market value.
If the regulatory pressure of President Xi Jinping hadn’t been enough for Chinese stocks, now the US has decided to add their own for US-listed Chinese stocks such as Alibaba.
With all this negativity, Alibaba has taken some pretty impressive first steps. They have a new chief financial officer and they’ve made some big changes to their commerce division.
The stock has currently rated a buy with massive upside potential.
Tencent (TCEHY)
For many, Tencent is the alternative bet to Alibaba. For many investors, Tencent is the wiser choice. Tencent has a lot of advantages when it comes to potential growth if there’s a stock rebound.
Firstly, they are in good stead with regulators. Fines that the company has received have been significantly lower than Alibaba! Secondly, the company has a much wider distribution of revenue, and a lot of that is geared around the tech industry.
Buying shares in Tencent is a great way to get exposure to Chinese tech stocks.
Nio (NIO)
The Chinese electrical vehicle company NIO could well be the top pick of the EV market. This company has been battle-tested like no other. The pandemic almost saw them bankrupt, but with a little help from the economic development authorities, they made it through.
The company’s production was halted by the chip shortage and the stock has been beaten up badly this year. But, NIO has three new models coming in 2022 alongside their network of battery swap stations.
GDS Holdings (GDS)
GDS is the most prominent operator and developer of data centers in China. Not only that but they are thought to have the best customer profile in the entire industry.
GDS stock prices are currently 50% lower than their high of around $120 in February this year, but they seem to have found a bottom.
New Oriental Education (EDU)
Educational stocks are a great way to diversify away from commerce and tech stocks. Chinese for-profit education stocks took a hard hit earlier this year. New Oriental Education, in particular, dropped from highs of around $9.50 down to under $2.
EDU is a speculative play and one that requires risk management. If you’re still interested, then just click here.
Which of These Best Chinese Stocks Will It Be?
This list of 5 of the best Chinese stocks to invest in right now is a great place to start your portfolio. As with any investment, it’s important to remember that the stock market can go up and down. Be sure to manage your risk, use stop-losses, and only invest what you can afford to lose.
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