3 Chinese Stocks to Buy Now: Q2 Edition


  • Explore the potential of Chinese stocks to buy now, with the Chinese economy rebounding while its stock trading at attractive valuations
  • BYD (BYDDF): BYD is a juggernaut in the EV market landscape, performing remarkably well despite the broader market slowdown
  • JD.com (JD): JD.com continues to exceed expectations while aggressively advancing in AI with potential cost reductions and new user growth
  • Baidu (BIDU): With a strong core in search and rapid expansion in AI and autonomous vehicles, Baidu offers robust upside while trading at an attractive valuation
Chinese Stocks to Buy Now - 3 Chinese Stocks to Buy Now: Q2 Edition

Source: Shutterstock

Chinese stocks to buy now offer an intriguing investing opportunity. To be fair, China destroyed more shareholder value than it created over the past few years. However, the tide appears to be turning. For starters, the Chinese economy is expanding at a healthy pace, growing 5.3% in the first quarter. It outpaced expectations and last year’s figures by considerable margins. This encouraging growth is spurred by strategic support from Beijing. The growth also bolstered a vibrant Lunar New Year, which points to a vibrant investing backdrop.

Furthermore, Chinese stocks are now trading at attractive level. Moreover, the country’s economic resurgence, coupled with a promising macroeconomic outlook, makes Chinese stocks a remarkably compelling bet for those looking to diversify and strengthen their portfolios.


Close-up of BYD (BYDDY) logo on red car, symbolizing BYDDY stock
Source: shutterstock.com/Trygve Finkelsen

BYD (OTCMKTS:BYDDF) is the new heavyweight in the electric vehicle (EV) arena. The company sur[assed Tesla last year to become the world’s largest electric car manufacturer. It ended up delivering  526,409 EVs during the fourth-quarter (Q4) last year, outpacing Tesla by roughly 42,000 vehicles. Moreover, it also reported a massive 81% surge in net profits for 2023 alone. It was backed by a 62% jump in sales volume to a record-breaking 3.02 million vehicles. However, its success hasn’t been reflected in its stock price as much as investors would’ve hoped. It’s still trading at 0.74 times forward sales estimates, 14% behind the sector median.

It picked up from where it left off last year in 2024 despite operating in a sluggish EV market. In the first-quarter (Q1), it reported an impressive 626,236 EVs. Though these numbers are down from Q4 2023 highs, they still significantly outperform their peers. After a slowdown in sales in the first couple of months of the year, it rebounded emphatically in March, underscoring its resilience.

JD.com (JD)

JD.com (JD) logo displayed at the entrance to the company's Silicon Valley office.
Source: Sundry Photography / Shutterstock.com

JD.com (NASDAQ:JD) has had it rough over the past few years. This was due to a regulatory roadblocks and a general economic slowdown in China. Despite these hurdles, the company has proven incredibly resilient, consistently outperforming market expectations over the past four quarters.

Its most recent report showed the firm exceeded top-and-bottom-line forecasts. There was a notable 10.1% bump in non-GAAP net income per ADS to 75 cents. Also, it reported an impressive 3.6% increase in net sales to $43.1 billion. They then rewarded its shareholders with $3 billion in share repurchases.

Furthermore, Its foray into artificial intelligence (AI) could pay many dividends in the upcoming quarters. The launch of ChatRhino, its generative AI service, could help transform the retail and logistics sectors by effectively leveraging data to offer unique solutions. Moreover, it recently unveiled several new AI services for merchants, potentially boosting sales while slashing operational costs by half. Additionally, with an influx of new users and its high-potential AI efforts, JD is positioned for continued long-term expansion. 

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.

Baidu (NASDAQ:BIDU) is a true titan in China’s tech landscape, positioning itself as a leader in the communication services space. Over the years, it has established its position in the tech space through its search engine, which continues to fuel its financial success.

Furthermore, it continues to deliver solid results, with its Q4 report showing how sales were up 9% while there was a dramatic 39% jump in net income YOY. Moreover, its stellar is complemented by the company’s investments in AI, particularly through its AI bot, Ernie, which has attracted over 100 million users. Its AI segment alone brought $91.2 million in revenues last quarter.

In addition to its core offerings, Baidu is going full-steam ahead in the autonomous vehicle market, delivering close to 839,000 rides last quarter, a 49% jump on a YOY basis. Despite these growth catalysts though, BIDU stock is trading at just 8.93 times forward non-GAAP earnings, 30% lower than the sector median.

On the date of publication, Muslim Farooque 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 InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/3-chinese-stocks-to-buy-now-q2-edition/.

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