Top Chinese stocks for traders to watch
Chinese stocks are still suffering during the country’s three-year bearish market, but some players have seen a resurgence in recent months. We look at the top five Chinese stocks we think are worth watching now and in the future.
Why trade Chinese stocks? Why are they popular?
Chinese stock prices are lower than they’ve ever been. The country has experienced a three-year bear market and because of this, its stocks are trading at their bottommost valuations in a decade. CEIC data reports that the Shanghai Stock Exchange’s price-to-earnings ratio is at its lowest since 2014.1
China is the second-largest economy in the world2 and provides a breeding ground for stocks worth watching.
The question we’re asking is: are Chinese stocks worth trading? If you’re interested in buying and selling Chinese stocks via CFDs, it might be the right time to take advantage of volatility.
Top 5 Chinese stocks to watch
These stocks were chosen for their recent bullish movements in a very bearish Chinese market, creating enough volatility that makes them worth keeping an eye on.
Trip.com
Online travel site operator, Trip.com saw sharp growth after China’s long-held Covid-19 restrictions ended in 2022.3
The company provides accommodation reservations, transportation ticketing, package tours and corporate travel management in China and internationally. It also offers an array of other travel-related services, like train, long-distance bus and ferry tickets and travel insurance (such as flight delay, air accident and baggage loss).
On the corporate side, it arranges business visits, incentive trips, meetings and conferences, plus travel data analysis and industry benchmarking. Its Corporate Travel Management System is a digital platform that handles online bookings and authorisations, enquiries and more.
To top it all off, Trip.com offers digital advertising and financial services, too.
The company operates under a number of brands, including Ctrip, Qunar, Trip.com and Skyscanner.
You might be more familiar with the Ctrip.com name – this is what the company was called prior to October 2019 when it changed its name to its current moniker.
It was founded in 1999, is based in Singapore and trades on the Nasdaq and Hong Kong Stock Exchange.4,5
BYD
BYD Co., Ltd. (short for Build Your Dreams) is primarily a research, development, manufacture and sales business specialising in rechargeable batteries and photovoltaic products. This part of the business deals in lithium-ion, iron and nickel batteries for mobile phones, electric tools and other portable electronics, energy-storage products and electric vehicles (EVs).
It operates in numerous other segments, too, including mobile handset components, assembly services, automobiles and related products.
For mobile handsets, it manufactures and sells housings, electronic components and assembly services. Under the automobiles and related products sector, it provides vehicles, vehicle-leasing, auto-related components, after-sales services – and even rail transportation.
It was founded in 1995 by Chuan Fu Wang and is headquartered in Shenzhen, China.6 It’s listed on the Hong Kong Stock Exchange.7
NIO
NIO Inc. is a smart EV designer, developer, manufacturer and seller in China. Its offering consists of five- and six-seater EV SUVs along with smart electric sedans.
In addition, NIO provides power services, such as Power Home, a home charging solution, Power Swap, a service to swap batteries, Power Charger and Destination Charger, Power Mobile, a charging-van service, Power Map, a map of public chargers with real-time information and finally, One Click for Power, a valet service.
In addition, it has centres for its EVs, where it provides repair, maintenance and bodywork services.
NIO also offers insurance, like third-party liability cover, vehicle damage, maintenance plans, roadside assistance, car hire services, financing and financial leasing services.
Moreover, the company makes its money from manufacturing e-powertrains, battery packs and related components.
NIO was formerly known as NextEV Inc. but changed its name in 2017. It was incorporated in 2014, and its headquarters are in Shanghai, China.8 It’s listed on the Hong Kong Stock Exchange and has American Depository Shares (ADSs) on the New York Stock Exchange.9
Tencent
Tencent Holdings Ltd is an investment holding company. It offers value-added services (VAS), digital advertising, fintech and other business services in China and internationally.
On the consumer side, it provides communication services, like instant messaging and social networks, and digital content, including online games, videos, live streaming, news, music and literature.
Under its fintech banner, it offers mobile payments, wealth management, loans, securities trading, network security, email and more.
For its enterprise business, it provides marketing tools like user insights and creative management, cloud services, like computing, big data analytics, artificial intelligence (AI), Internet of Things (IoT) and security. And it also deals in financial services, education, healthcare, retail, transport, energy, and radio and TV applications.
Tencent was founded in 1998 and is headquartered in Shenzhen, China. It’s currently listed on the Hong Kong Stock Exchange.11
PDD Holdings
PDD Holdings is a Chinese retailer that owns the online marketplace Temu and the e-commerce platform Pinduoduo, which offers products in a variety of categories, including agricultural produce, apparel and shoes, bags, mother and childcare products, food and beverages, appliances, household goods, personal care, fitness and vehicle accessories.12 It’s one of China’s largest e-commerce platforms with nearly one billion users.13
Temu is similar in its offerings, with a greater focus on consumer products.
It’s based in Dublin, Ireland (having moved its headquarters from China in 2023)12 and is listed on the Nasdaq.14
How to take your position on Chinese shares
- Create an account or log in
- Find a Chinese stock opportunity
- Click ‘buy’ to go long or ‘sell’ to short using CFDs
- Set your position size
- Take steps to manage your risk
- Open and monitor your position
1Morningstar, 2024
2NerdWallet, 2024
3Investors, 2024
4Investing.com, 2024
5Trip.com, 2024
6Market Watch, 2024
7BYD Global, 2024
8Investing.com, 2024
9NIO Inc., 2024
10Investing.com, 2024
11CNBC, 2024
12Investing.com, 2024
13Forbes, 2024
14Nasdaq, 2024
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