Year of the Dragon: 3 Hot Chinese Stocks for Prosperous Returns


  • China will welcome in the year of the dragon in short order, with many luck-seeking investors perhaps changing their tone on these assets.
  • Alibaba (BABA): Has been among the hardest-hit Chinese stocks due to a massive regulatory crackdown in China.
  • Baidu (BIDU): A leader in the Chinese search market, Baidu is becoming a household name in other key categories.
  • (JD): Could be a long-term global leader in the e-commerce race, worth considering on this major dip.
Chinese stocks - Year of the Dragon: 3 Hot Chinese Stocks for Prosperous Returns

Source: humphery /

China will welcome the Year of the Wood Dragon, symbolizing growth and progress. To shift from stock market losses, the People’s Bank of China announced a larger-than-expected cut in banks’ required reserve ratio to boost sentiment around the New Year’s holiday. Thus, perhaps this time of prosperity has already begun, leading some Chinese investors to pile back into the market. Also, some Chinese stocks are about to hit a major boom.

Investors are clearly hoping for for a prosperous “green dragon” in 2024. Despite numerous macro challenges, China aims for a 5% growth target. The country hopes to achieve this by implementing effective stimulus measures amid market uncertainties.

With more money being pumped into the Chinese market than we’ve seen in a while, here are three stocks investors may want to consider this Chinese New Year.

Alibaba (BABA)

The Alibaba (BABA) logo featured outside of an office building with bushes in the background
Source: zhu difeng /

Down by 40% in 2023 compared to its American competitors, Alibaba (NYSE:BABA) has undoubtedly had a rough go of it in recent years. Although regulatory concerns remain, new catalysts have risen that signal potential growth for the company in 2024. 

One of Alibaba’s early believers was SoftBank, and it was only in 2021 that this company announced it would be selling most of its stake in the Chinese tech giant. This lack of confidence in the company has contributed to the stock’s continued decline, leading to a lack of interest in Alibaba relative to higher-growth peers.

That said, Alibaba’s new CEO Eddie Wu plans to revitalize earnings and growth catalysts. While the company has been shaken a bit due to recent insider buying, there are reasons for optimism for the stock. Previous chair Jack Ma, and current chair Joe Tsai bought a big stake in Alibaba in Q4. The company is also experimenting with selling its InTime store arm in the market.

Alibaba’s future relies on its robust position in China’s fast-evolving cloud computing sector. As of first quarter of 2023, Alibaba Cloud accounted for 34% of the Chinese cloud market, with solid growth predicted in the Chinese public cloud sector. Moreover, with AI integration driving its growth, the company’s pricing power and high renewal rates puts Alibaba in a good position for continued upside in the years to come.

Baidu (BIDU)

An image of a laptop on a table with the screen showing the red and blue logo for Chinese Internet company "Baidu", with the background being blurred.

Labeled as China’s Google, Baidu (NASDAQ:BIDU) has made some intriguing moves in the generative AI sector. The company has made a brilliant ecosystem shift through its foundation models. Cohesive with API, Baidu’s ERNIE can support AI-native applications for businesses of all sizes, encouraging collaborative ecosystem development. More than 10,000 companies and businesses have adopted a monthly subscription to ERNIE since its regulatory approval. With the capacity to handle millions of daily queries, ERNIE offers seamless AI-integrated applications that go well into other Baidu products.

Additionally, ERNIE’s chatbot now unifies Samsung’s latest model, the Samsung Galaxy S24. The collaboration between Baidu and Samsung has sprung real-time transition features and advanced AI capabilities, ready to compete with Apple’s latest iPhone models.

Aside from the AI integrations, Baidu also reported strong financials, with operating income growth of more than 20% year-over-year, a 5% increase in total revenue, and another 6% growth in non-online marketing earnings. Its ride-hailing service, Apollo Go, also reported positive numbers, seeing a rise of more than 73% rise in its total rides. Although the company experienced a 22% decline in 2023, Baidu is well-positioned to rebound because of its AI commitments. (JD) (JD) logo displayed at the entrance to the company's Silicon Valley office.
Source: Sundry Photography / (NASDAQ:JD) is a well-known Chinese tech giant, touted for its excellent strategies that involve long-term stable investments. The company focuses on two key areas: creating a unique platform ecosystem, and accelerating an everyday low prices (EDLP) model. Therefore, the company aims to enhance business efficiency while meeting diverse consumer demands. JD has long focused on balancing the needs of affordability and quality fit for its customers. 

The company also prioritizes user satisfaction through enhanced customer service. Such innovations include instant refunds and best-price guarantees. Its excellent Q3 order frequency reports show that the strategy is very effective and has successfully increased engagement. also provides a competitive platform for both first-party and third-party sellers. The scoring system for third-party merchants was recently improved, resulting in improving sentiment and outcome expectations from experts such as continuous double-digit growth in the company’s third-party advertising segment. These efforts position JD stock well for continued valuation growth over the long-term. This is easily one of the top Chinese stocks that you should consider.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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