Are These The Best Chinese Stocks To Buy Right Now?
In the stock market this week, investors may be wondering, why are Chinese stocks down? For the most part, this would be due to a series of crackdowns from the Chinese government. Just last week, Chinese education stocks took a hit as China introduced new rules against for-profit education companies. Now, it seems like the market is strongly reacting to all of this, explaining the current mass selloffs. While Chinese stocks continue to decline, could we be looking at a unique buying opportunity in the market now?
Some would argue that the biggest names in this section of the stock market today boast impressive operations, nonetheless. While new regulations may throw a stick into their growth paths, for now, some of the larger names in the space will likely adapt accordingly. For instance, we could take a look at the likes of Pinduoduo (NASDAQ: PDD) and Daqo New Energy (NYSE: DQ). Firstly, over 720 million users rely on Pinduoduo’s e-commerce services monthly, according to the company’s latest quarter fiscal. Secondly, Daqo is an upcoming name in the renewable energy industry, which continues to expand as sustainability efforts accelerate globally.
These are but two instances of Chinese stocks that are, arguably, able to navigate the current regulatory pressures faced in the market now. Whether it is due to their scale or the relevance of their industries, there are plenty of large-cap players for investors to consider now. With all that in mind, investors could be seeing more value plays among the top Chinese stocks in the market now. Do you have these four top tech stocks on your watchlist this week?
Best Chinese Stocks To Watch This Week
- Alibaba Group Holding Ltd. (NYSE: BABA)
- JD.com Inc. (NASDAQ: JD)
- Futu Holdings Ltd. (NASDAQ: FUTU)
- Nio Inc. (NYSE: NIO)
Alibaba Group Holdings Limited
Alibaba is a multinational technology company that specializes in e-commerce, retail, and the Internet of Things (IoT). Its technology infrastructure and marketing reach millions of merchants, brands, and businesses to engage customers in a digitalized economy. Its main businesses include core commerce, cloud computing, digital media and entertainment, and innovation initiatives. It also boasts an impressive ecosystem for its platforms and businesses. BABA stock currently trades at $195.19 as of Friday’s closing bell.
In a letter to its shareholders today, CEO Daniel Zhang says that despite the challenges, it remains focused on transforming adversity into opportunity. Impressively, its global annual active consumers across the Alibaba ecosystem reached 1.13 billion at the end of March 2021. This surpasses the historic one billion consumer milestone.
Its globalization strategy is also making progress and its overseas active consumers reached 240 million. This was driven by impressive growth in Southeast Asia through Lazada and the rapid expansion of AliExpress in Europe. Furthermore, Alibaba Cloud continues to enjoy substantial growth. Revenue grew by 50% year-over-year and is the world’s third-largest Infrastructure as a Service (IaaS) provider. All things considered, is BABA stock worth adding to your portfolio right now?
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Next up on this list, we have JD.com, an e-commerce company that is headquartered in Beijing. In fact, it is one of the largest online retailers in China by revenue. The company is known for its commitment to quality, authenticity, and its vast product offering covering everything from fresh food and apparel to electronics and cosmetics. Impressively, its nationwide fulfillment network covers 99% of China’s population and provides same and next-day delivery. JD stock currently trades at $70.88 going into Monday’s pre-market trading session.
However, this could be an opportunity for investors to buy on the dip. Given how the company has had a stellar March quarter, JD could ride out of this regulatory woes. Firstly, it posted net revenue of $31 billion for the quarter, an increase of 39% year-over-year. Secondly, net income for the quarter was $600 million and diluted net income per share for the first quarter of 2021 was $0.34. Its annual active customer accounts also increased by 29% to almost half a billion.
The company says that it is also increasingly becoming the partner of choice for millions of businesses who benefit from its advanced supply-chain infrastructure to reduce costs and boost operating efficiency. Given the company prospects, will you consider watching JD stock?
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Futu Holdings Inc.
Futu is a finance company that is based in Hong Kong. It offers a fully digitized brokerage and wealth management platform. The company provides investment services through its proprietary digital platform, Futubull. Futubull is a highly integrated application accessible through any mobile device, tablet, or desktop. FUTU stock currently trades at $102.46 as of the end of Friday’s closing bell and is up by over 200% in the past year.
Last month, the company announced that its paying clients in Singapore have surpassed 100,000. The company says that it launched its digital platform moomoo in March and has been experiencing strong growth momentum since its inception.
Futu also announced that the S&P Global Ratings has assigned an investment-grade long-term issuer credit rating “BBB-“ to the company. The outlook on the long-term rating is stable. Futu says that this reflects the company’s leading market position in the brokerage market, strong capitalization with solid financial standing, and prudent risk controls. With that being said, will you watch FUTU stock?
Last but not least, we will be taking a look at Nio Inc. Now, most seasoned auto investors would be familiar with the company to a certain extent. This would be the case over the past year as electric vehicle (EV) stocks continue to gain momentum across the board. Not to mention, Nio is also a leading name in the Chinese EV market now, which is currently the world’s largest EV market. In particular, Beijing estimates that 40% of all passenger vehicles sold in 2030 will be EVs. With NIO stock currently trading at $44.68 as of Friday’s closing bell, could it be worth jumping on now?
Despite the current dip in its shares, Nio is not sitting idly by on the operational front. Thanks to its growing array of smart EVs and battery swapping services the company continues to break new ground internationally. Just last week, the company shipped its first batch of EVs to Norway.
Subsequently, reservations and delivery services will be available to Norwegian consumers by September later this year. This would mark the company’s entry into the European EV market which continues to see surges in demand. With Nio seemingly firing on all cylinders now, would you consider NIO stock a top Chinese stock to watch?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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