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  • Best Chinese Stocks to Buy Right Now with Huge Returns

    Best Chinese Stocks to Buy Right Now with Huge Returns

    With investors facing the panic of a looming recession, a number of stock categories are coming under the spotlight, as market participants consider parking their funds in different avenues.

    One area of high promise that has consistently been observed across investor discourse is the Chinese stock opportunity.

    Stocks of Chinese companies typically do not face the same macroeconomic headwinds that impact Western, and more specifically US stocks.

    Moreover, with the country gaining the edge over Covid-19, and lockdown relaxations anticipated, the Chinese economic engine is expected to once again go full throttle.

    Chinese stocks, which were held down, because of these conditions, face tremendous upside potential.

    China-based companies are increasingly aiming at taking the top spot in all major global market segments.

    Therefore, in light of this fierce ambition, we present a list of 25 great picks to help you discover the best Chinese stock to buy, in no particular order.

    What Is the Chinese Stock Market?

    What is the Chinese stock market

    So, you’ve got your eyes on the Chinese market in search of the best Chinese stock to buy? Great choice.

    But before we dive into the juicy stock picks, let’s get on the same page about the Chinese stock market.

    In a nutshell, the Chinese stock market is a bustling hub of opportunities, where companies listed on exchanges in Shanghai and Shenzhen invite investors to grab a slice of their success.

    It’s a place of growth, innovation, and bold ventures –full of surprises.

    With China’s economic might and the potential for massive returns, exploring this market could be the key to unlocking some exciting investment prospects.

    So get ready as we journey through a number of picks to help identify the best Chinese stock to buy that promises huge returns.

    Top Chinese Stocks

    Let’s now dive right into the crux of the matter. What is the best Chinese stock to buy?

    Well, the good news is we have curated a fantastic list of 25 picks that you could choose from. So buckle up, and enjoy the ride:

    1. Baidu Inc.

      The first stock on our list of Chinese stocks to buy is China’s tech star, Baidu Inc. (NASDAQ: BIDU).

      It certainly has the potential to be called the best Chinese stock to buy

      Baidu offers a range of tech and digital services, yet what we find to be a potential game-changer is its self-driving services and fleet of robotaxis, which it markets under the brand, Apollo Go.

      Apollo Go has established itself as the undisputed leader in China’s growing autonomous taxi realm.

      It has operations that span 10 Chinese cities and has reported half a million taxi rides in the last three quarters alone.

      With recent developments, Baidu is well positioned to overtake both domestic competition such as the Alibaba-backed, AutoX, as well as global giant, Tesla Inc.

      Speaking of Tesla, its widely rumored self-driving taxi service is still awaiting launch, whereas BIDU is already making its mark on its market.

      This commercial head-start is likely to prove crucial on the competitive front for the company, allowing it to innovate at a faster pace than players such as Tesla.

      Proof of Baidu’s innovative superiority comes with Baidu’s launch of the RT6 electric vehicle robotaxi.

      This spacious SUV with 36 sensors, is not only superior in terms of its taxi service but also promises a dramatic cut down in cost through optimization.

      This would allow the company to significantly scale up in the short-term and is in line with the management’s strategic objectives to operate 100,000 robotaxis by 2030.

      Management remains confident that through this goal it could achieve annual revenue of up to $1.6 billion through this segment alone.

      This emphasizes the immense upside potential that is inherent to BIDU, owing to its superior market positioning against competitors and innovative approach.

    2. Canaan Inc.

      Second, we bring forth Canaan Inc., (NASDAQ: CAN) a company that has been making revolutionary strides in integrated circuit and chip research, design, and marketing.

      If there is a pick worthy of being the best Chinese stock to buy, it would be CAN.

      Canaan holds a market edge given its own application-specific integrated circuit chips, which is also known as an ASIC chips.

      As a result, the Beijing-based company is the world’s leading producer of high-performance Bitcoin mining machinery.

      Demand for these mining systems is CAN’s strongest growth driver, with it supplying heavily to some of the leading crypto-markets in the world, which include the US, Germany, and South Korea.

      These products accounted for almost 65% of Canaan’s 2021 revenue.

      Additionally, CAN’s breakthrough ASIC chip development have also given the company exposure to a robust AI applications market.

      Given the small size and high-performance features of its chips, Canaan products are a preference amongst IoT developers, as well as those that work with facial recognition and speech analysis.

      As cryptocurrencies continue to see wider adoption, demand for Canaan mining machinery is likely to see a surge in the long term.

      Although it operates in a highly competitive industry, Canaan takes lead over its peers, by its incredibly fast time to market.

      This strategic strength of the company had led to an early monetization of its ASIC chips, giving it a first-mover’s advantage.

      Considering the enormous upside potential inherent to CAN, and the significant tailwinds that support its flight, this Chinese stock is a great one to buy.

      Despite robust financials, the stock is down by over 60% since the last 12 months, indicating the significant discount it is trading at.

      This makes the stock even more attractive, considering the bargain it offers.

    3. NIO Inc.

      Number three on our list is the Chinese EV developer, NIO Inc. (NYSE: NIO).

      Looking at the company’s present performance, there is much for investors to marvel at.

      This is a company facing the brunt of a supply chain lockdown, given China’s strict Covid-related restrictions.

      Despite this, NIO more than doubled its annual revenue in 2021, from $2.5 billion to $5.7 billion.

      Similarly, its first quarter earnings for 2022 jumped by almost 25% on a year-on-year basis.

      A reason for these impressive numbers despite severe supply challenges was the company’s strategic decision to enhance production capacity through retrofitting existing systems.

      As a result, it managed to surpass its 2021 performance significantly, despite the smooth conditions of last year.

      For July, NIO delivered over 10,000 electric vehicles, which was a 27% jump against the prior year’s July figure.

      Despite such tremendous financial performance, the stock has fallen by almost 60% in the last 12 months.

      This signals perhaps one of the strongest ‘buy-the-dip’ opportunities out there, which is simply too good to ignore.

      Moreover, we consider the relaxation of China’s Covid-19 restrictions, which is already beginning to be implemented at gradual levels.

      If the company has been performing so impressively amid such overwhelming restrictions, one can only imagine the growth that NIO would take when the environment is eventually favorable to its operations.

      The stock, therefore, stands on the verge of an imminent price explosion and thus making its place in the best Chinese stocks to buy.

    4. 360 DigiTech Inc.

      Next up, we present China’s very own, fintech star, 360 DigiTech Inc. (NASDAQ: QFIN). Financial technology will forever remain a critical part of the stability of global systems.

      360 DigiTech is well positioned to reap the benefits of the continuity and sustainability of fintech.

      After all, the company is the largest player in the world, in terms of its investment flow in monetary terms.

      2021 had proven to be the most successful financial period for QFIN, despite the broader supply-related challenges faced.

      The company had continued its earnings per share growth spurt which saw a rise from 17.3 Chinese Yuan in 2019, to an impressive 37.6 just two years later.

      Similarly, on the competitive front, no domestic peer comes close to 360 DigiTech, given its pioneer status as being the first player in the Chinese market to improve loan facilitation through its tech platform.

      With 193 million users, it is the leading Chinese loan provider.

      In the first quarter of 2022, QFIN reported the highest amount of loans provided within the country, as well as the highest revenue figure.

      Given the company’s asset-light capital structure, it offers efficient solutions to its consumers.

      Policy shifts by the Chinese government on tighter loan regulations further work in favor of QFIN.

      This is because the company’s business model ensures targeting systematic risks and excess leverage.

      The result is a stronger market position, where the company further rises above its peers.

      As the Chinese economy takes off once again with the relaxation of Covid-related restrictions, so too is QFIN likely to rise significantly, and expand its scope of services.

      QFIN offers investors exposure to the oncoming Chinese financial boom.

    5. JD.com

      The final stock on our list, and far from being the least, is the Chinese internet tech company, JD.com (NASDAQ: JD), which is more commonly referred to as JD.

      Although the company provides a wide array of services, ranging from supply chain solutions to online healthcare provision, it is primarily a fast-rising e-commerce player.

      Its online marketplace platform boasts over 550 million monthly users.

      Despite China’s recent economic slowdown, JD brought in annual revenue of a whopping $155 billion in 2021.

      The company has maintained annual growth rates of close to 30% for most of the last decade.

      According to Bloomberg analyst consensus, there is a high likelihood that sales will grow to almost $225 billion by as early as 2024.

      Despite proposing such healthy financials, the stock had still fallen by 25% in the last six months.

      This was in large part due to the pessimism surrounding the Chinese economy, given the widespread lockdowns.

      This is further exacerbated by present tensions between China and Taiwan.

      At its present price of $55, JD is trading at an incredible discount. Its PS ratio stands at a mere 0.55, in comparison to the industrial median figure of 0.95.

      Analysts have placed a target price of almost $85, which suggests an upside potential of almost 55%.

      As impressive as JD’s performance is, its fundamentals are about to skyrocket for the company.

      Most of the headwinds that had been limiting its flight are beginning to subside.

      In addition to the relaxation of Covid-19 restrictions, strict regulation toward tech companies also seems to be coming to a close.

      The sooner one buys JD the higher their potential gain on the stock is.

    6. PDD Holdings

      Alright, investors, let me tell you why PDD Holdings (PDD) or Pinduoduo, is a sweet pick! Founded in 2015, this Chinese e-commerce gem is on the upswing with a unique “group buying” model.

      It’s a top player in the booming $3.3 trillion Chinese e-commerce market, and its financials are solid!

      They’ve got a hot grocery vertical, Duoduo Grocery, and are expanding to new regions via Temu app.

      With high growth potential, strong ESG focus, and a forward-thinking approach, PDD is a compelling choice for diversifying your e-commerce portfolio.

    7. Bilibili

      Bilibili (BILI) is the hot pick you don’t wanna miss!

      Despite all the buzz about de-globalization and inflation, we see massive potential in AI, and that’s where Bilibili shines.

      Generative AI is the game-changer here, empowering individuals and SMEs, not replacing them!

      Plus, Chinese companies are all in on this tech, with Bilibili leading the charge.

      Their numbers look good, and with Sony’s backing, geopolitical risks are in check. So, ride the wave of generative AI and grab this attractive opportunity while it’s hot!

    8. Invesco Golden Dragon China

      If you’re on the lookout for a great Chinese stock pick, consider the Invesco Golden Dragon China (NASDAQ: PGJ).

      Sure, Chinese economic data has had its fair share of challenges lately, but don’t let that deter you.

      Many of the tech giants in this ETF are well-capitalized, generating solid cash flows, and benefiting from a more favorable regulatory environment.

      Plus, with potential consumer stimulus and the increasing focus on AI, this oversold tech play looks like a steal. Keep the faith, as this one could lead to some huge returns!

    9. Alibaba

      Now let’s talk Alibaba (BABA) – the Chinese stock with some serious potential.

      Sure, some people are worried about US-China tensions, but guess what? Management is all about extracting shareholder value.

      BABA’s valuation is currently at a discounted level, and they’re spinning off business units left and right.

      Plus, they’ve got a bunch of cash and investments on hand. With all these moves, there’s a chance for some serious upside.

      So, grab a seat and consider making BABA a core position in your portfolio!

    10. Xunlei

      Here’s why Xunlei (NASDAQ: XNET) is a great pick! It’s an underfollowed Chinese microcap trading way below net cash, worth about $500 million.

      With the US market overpriced, this is a unique chance for outsized returns.

      Xunlei excels in digital ventures & consumer products. Despite past ups and downs, the current management led by Jinbo Li has turned it profitable.

      Their revenue lines include cloud computing, subscriptions, and live streaming.

      Plus, they reinvest smartly in R&D, proving they’ll grow further. Consider this undervalued gem for long-term potential and big gains.

    11. BYD

      BYD (OTCPK: BYDDF) is a solid pick because they are leading the way in electric vehicle (EV) production and scaling up their BEV exports rapidly.

      Unlike some legacy ICE car makers, BYD is fully embracing the transition to pure BEV sales.

      They offer affordable BEV models in markets with limited BEV history, making them well-prepared for the shift.

      Also, their focus on over-the-air updates for a better driving experience shows their commitment to staying ahead in the EV game.

      With BYD’s clear vision and dedication, it’s a promising investment in the evolving world of electrified transport, and potentially contender for best Chinese stock to buy.

    12. Trip.com Group Limited

      Trip.com Group Limited (NASDAQ: TCOM) could be a great pick with huge returns.

      Though hit by the COVID-19 pandemic in China, things are starting to look up as the country handles the situation better.

      With pent-up demand and the potential for international travel to pick up, Trip.com stands to benefit.

      The company’s technology-driven approach and growing market share are impressive.

      While there are risks, like inflation and international travel demand, the overall outlook is positive.

      It’s a worthy consideration for investors looking to capitalize on the rebound in the travel industry.

    13. Cango Inc.

      Here’s another hot Chinese stock pick for you: Cango Inc, which is potentially a contender for best Chinese stock to buy. (NYSE: CANG)!

      After a major makeover, it’s back in the game with its first profits in almost two years.

      Cango transformed from an auto financier to a booming car-trading platform, offering new and used cars, plus cool services for car owners and dealers.

      Despite China’s slumping car market, Cango’s revenue has been on the rise for three straight quarters.

      It’s also showing impressive cost control, driving those profits up. Keep an eye on this one; it’s shifting gears in the right direction!

    14. Hesai Group

      Hesai Group (NASDAQ: HSAI) seems like a fantastic Chinese stock pick with huge potential!

      It’s a leading LiDAR technology company, and guess what? China is at the forefront of autonomous driving with its massive vehicle sensor shipments!

      Hesai controls a whopping 60% of the global LiDAR market, making it a major player.

      But Wall Street seems hesitant due to some intellectual property disputes and losses.

      However, don’t forget their remarkable revenue growth and promising future projects.

      It’s a competitive market, but Hesai could be a game-changer. So, investors, keep an eye on this one.

    15. Li Auto

      If you’re on the lookout for a hot pick in the Chinese electric vehicle scene, then Li Auto (NASDAQ: LI) is the one to consider! Why, you ask?

      Well, these guys are killing it in the production and delivery game, leaving rivals NIO and XPeng in the dust.

      With a whopping 32,575 electric vehicles delivered in June, breaking records left and right, they’re definitely making waves.

      Plus, their vehicle margins are strong, and they’re on track to hit profitability way ahead of the competition.

      All in all, Li Auto screams “strong value” in the Chinese EV market.

    16. FinVolution

      If you’re looking for a top Chinese stock pick with huge potential returns, consider FinVolution (NYSE: FINV).

      This rapidly-growing fintech company operates a peer-to-peer lending platform connecting 24 million Chinese consumers with 75 financial institutions.

      China’s economic growth forecast is on the rise, while many Western economies face a risk of recession.

      Plus, FinVolution’s founder-led team boasts experienced executives from Microsoft and Baidu.

      With its AI-powered business model and strong Q4 financial results, this undervalued stock could be a game-changer for your investment portfolio.

      Don’t miss out on this fintech gem!

    17. XPeng

      If you’re looking for a promising Chinese stock pick, consider XPeng (NYSE: XPEV), which is potentially a contender for best Chinese stock to buy.

      Despite some past price wars impacting deliveries and net profit margins, it showed a moderate recovery, indicating strong support levels at $7.

      Recently, it bounced back, fueled by impressive deliveries and optimistic G6 pre-orders.

      With its entry into the mass market and strategic pricing, consumer demand looks healthy.

      The launch of Navigation Guided Pilot software may boost sales further.

      While risks exist, analysts expect top-line growth of +34.4% through FY2025.

      Keep an eye on XPEV as a potential Buy but watch support levels closely!

    18. NetEase

      If you’re on the hunt for a top Chinese stock with huge return potential, consider NetEase (NASDAQ: NTES).

      Their mobile game, Diablo Immortal, has been a favorite among gamers who are put off by splurging on microtransactions.

      With a focus on the booming mobile gaming industry and a lineup of promising games like Eggy Party and Harry Potter: Magic Awakened, NetEase seems poised for success.

      Financially, they’re solid, and their current valuation indicates potential undervaluation.

      Keep an eye on this one, it could be a long-term winner in the gaming world!

    19. China Automotive Systems

      China Automotive Systems, Inc. (NASDAQ: CAAS) is a solid pick for adventurous investors.

      They make essential automotive products in high demand, and their strong partnerships with major players like FAW Group and General Motors boost their growth potential.

      With the rise of electric vehicles and China’s commitment to electrification, CAAS is in a sweet spot.

      Despite risks like trade tensions and competition, we see a positive outlook for the company.

      Just be mindful of the risks and consider buying on price dips.

      Remember, moderation is key, and consult an expert for foreign investment implications.

    20. Qifu Technology

      Qifu Technology Inc. (NASDAQ: QFIN) is a solid pick for investors right now and potentially contender for best Chinese stock to buy.

      The company’s recent shift in its dividend policy, offering a bi-annual dividend and a higher payout ratio, showcases its commitment to shareholders.

      While some may worry about its focus on dividends instead of aggressive growth, the increased dividend payout ratio and conservative forward dividend yield make it attractive.

      Additionally, QFIN’s technological updates, like integrating with WeChat and adopting ChatGPT, promise improved customer interactions and operational efficiency.

      Patience is key as the Chinese loan environment recovers, but the long-term potential is promising.

    21. Autohome Inc.

      If you’re on the lookout for a promising Chinese stock, consider Autohome Inc. (NYSE: ATHM).

      While the recent share price performance couldn’t be sustained, don’t let that discourage you.

      The company’s Q1 2023 results were impressive, and it’s currently trading at an attractive multiple.

      With a solid cash reserve and potential for growth, ATHM might be a hidden gem.

      Keep an eye on their strategy to address shareholder capital return, and there could be huge returns in the future.

    22. Tianqi Lithium

      Moving on to Tianqi Lithium (TQLCF): it’s a big player in the lithium game, ranked third globally.

      This Chinese powerhouse holds a diverse portfolio of assets in Australia, China, and Chile, making it a crucial player in China’s electric vehicle revolution.

      The government’s got their back too, seeing the strategic importance of lithium supply. Sales and operating income have skyrocketed, and the stock looks pretty cheap.

    23. Daqo New Energy

      If you’re looking for a hot Chinese stock pick with huge returns, consider Daqo New Energy (NYSE: DQ).

      It’s a key player in the photovoltaic supply chain, providing essential polysilicon for solar panels.

      Despite some recent beta risk due to volatility, Daqo’s low cash cost to produce polysilicon and strategic factory location in Baotou City offers a competitive edge.

      And here’s the kicker: the company’s valued at $3.54 billion, but it holds over $4.9 billion in cash and receivables!

      With solid growth potential and a strong buyback program, DQ looks like a compelling buy.

    24. Tencent Music

      Moving on. Here’s why Tencent Music (NYSE: TME; 1698. HK) is a solid pick and potential contender for the best Chinese stock to buy.

      Sure, its latest revenue might’ve taken a hit, but hey, it’s all about that net profit, which jumped 115% YoY to a sweet 1.15 billion yuan ($167 million).

      How’d they do it? Tencent Music slashed operating expenses by a whopping 25.1%, and their focus on quality subscribers paid off big time.

      While some analysts are still unsure, others are cheering with a “buy” rating, expecting a 40% upside.

      And let’s not forget their AI ventures, promising a fresh tune for growth!

    25. ANTA Sports Products

      ANTA Sports Products (OTCPK: ANPDY) is a great pick because it’s like the Nike of China.

      The company has shown impressive growth, with a revenue increase of 22% in the last decade, and it’s dominating the athletic apparel space in China.

      They own well-established brands like FILA, and their innovative products are gaining popularity.

      Although there are systematic risks with investing in Chinese stocks, ANTA’s attractive valuation and potential for double-digit growth make it a compelling choice for investors looking for huge returns.

      Just keep an eye on the Chinese government’s actions, and you’re good to go!

    Ways to Invest in Chinese Stocks

    Now that you’re all set to dive into the exciting world of Chinese stocks, let’s talk about the various ways you can actually invest in these gems.

    Ways to Invest in Chinese Stocks

    The question on your mind must be where to buy Chinese stocks.

    First up, we’ve got the classic option of buying individual Chinese stocks through your brokerage account.

    This allows you to handpick the companies you believe will hit it big and ride their success.

    If you prefer a more diversified approach, you can opt for exchange-traded funds (ETFs) that focus on Chinese stocks.

    These funds bundle a bunch of stocks together, spreading your risk across multiple companies.

    Another interesting option is American Depository Receipts (ADRs), which represent shares of Chinese companies listed on U.S. exchanges.

    This makes it easier for you to invest without dealing with foreign exchanges.

    Remember, whichever path you choose, always do thorough research and stay up-to-date with the latest news to make well-informed investment decisions.

    And always make sure you understand where to invest in Chinese stocks with the least amount of uncertainty.

    Understand the Risks

    Now it’s time to get real and talk about the risks. Remember, investing is like riding a roller coaster—it has its thrills, but it’s not without its bumps.

    Here are some potential risks you should be aware of if you are serious about finding best Chinese stock to buy:

    • Regulatory Hurdles

      Keep an eye out for changes in Chinese regulations.

      The government can be unpredictable, and new policies could impact the companies you’ve invested in.

    • Geopolitical Tensions

      China’s international relations can get tense, and trade disputes may affect the performance of Chinese stocks.

      Always consider this when you understand where to buy Chinese stocks from.

    • Currency Fluctuations

      Remember that investing in Chinese stocks means exposure to the yuan’s fluctuations against your home currency. Exchange rate movements can impact your returns.

    • Transparency Concerns

      Some Chinese companies might not meet the same disclosure standards as those in more developed markets.

      Be cautious about the lack of transparency. This is important for anyone to know who understands how to buy Chinese stocks.

    • Market Volatility

      Like any stock market, the Chinese market can be volatile. Brace yourself for ups and downs along the way.

      Keep this in mind when searching for where to invest in Chinese stocks.

    • Competition

      Chinese companies operate in a fiercely competitive landscape. Be aware that competitors might impact your chosen stocks.

    Best Online Brokers for Chinese Stocks

    Before you start your search for the best Chinese stock to buy, you need to choose a broker

    There are a lot of different brokers out there, and not all of them are created equal.

    Some are better for international trading than others.

    Here are a few of the best online brokers for Chinese stocks, for anyone that knows how to buy Chinese stocks:

    • Interactive Brokers

      This is a top pick for international trading. IBKR has low fees, a wide range of markets, and excellent customer service.

    • Charles Schwab

      Schwab is another great option for international trading. They have a wide range of features and resources, and their customer service is top-notch.

    • TD Ameritrade

      TD Ameritrade is a popular choice for U.S. investors, but they also offer access to Chinese stocks.

      They have a good selection of features and resources, and their customer service is solid.

    Features to Look for in Chinese Stock

    We now get into the nitty gritty of the things to focus on when considering various Chinese stocks.

    These core features are discussed below, and may help you in your search for the best Chinese stock to buy:

    • Strong Revenue Growth

      Look for companies with a track record of consistent revenue growth in the Chinese market.

      Growing revenue signals a healthy business and potential for higher stock prices.

    • Market Share Expansion

      Consider companies that are expanding their market share in China.

      A growing market presence indicates a competitive advantage and the potential for increased profits.

    • Government Support

      Keep an eye on stocks backed by government initiatives or policies.

      Chinese government support can boost a company’s prospects and stability.

    • Technological Innovation

      Invest in companies that are at the forefront of technological advancements in China. Innovation can drive rapid growth and disrupt traditional markets.

    • Consumer Trends

      Pay attention to companies tapping into popular consumer trends in China.

      Meeting changing consumer preferences can lead to higher demand for their products or services.

    Common Investment Terms for Investing in Chinese Stocks

    Knowing the following investment terms will help you navigate the specific challenges and opportunities that come with investing in Chinese stocks.

    Common Investment Terms for Investing in Chinese Stocks

    This is the next step to understand after figuring out where to buy Chinese stocks from.

    It is crucial to become accustomed to the following if you are looking to seek out the best Chinese stock to buy:

    • ADR (American Depositary Receipt)

      ADRs are a way for investors in the U.S. to own shares of foreign companies, like Chinese stocks, without directly trading on foreign exchanges.

      It simplifies the process of investing in Chinese companies and allows you to trade them like regular U.S. stocks.

    • H-Shares and A-Shares

      Chinese companies listed on the Hong Kong Stock Exchange have H-Shares, while companies listed on mainland Chinese exchanges have A-Shares.

      Understanding this distinction is crucial as it determines the kind of access and regulations that apply to each type of stock.

      These are a must know for anyone interested in how to buy Chinese stocks.

    • Market Capitalization

      Market cap refers to the total value of a company’s outstanding shares.

      It’s essential to know a company’s market cap when investing in Chinese stocks, as it gives you an idea of its size and relative stability in the market.

    • Regulatory Risks

      Understanding the regulatory landscape in China is vital because it can significantly impact Chinese stocks.

      Changes in regulations or government policies can lead to sudden fluctuations in stock prices.

    • Currency Exchange Rates

      As a foreign investor, knowing how currency exchange rates affect your investments in Chinese stocks is crucial.

      Fluctuations can impact your returns positively or negatively.

    • Liquidity

      Liquidity refers to how easily you can buy or sell a stock without significantly affecting its price.

      Certain Chinese stocks not listed on major exchanges may have lower liquidity, which would impact their buying and selling.

    Conclusion

    Many describe the Chinese growth engine as being unparalleled to any other, given the rapid rise of its economy.

    Chinese stocks had increasingly faced a number of challenges and headwinds, which appear to be coming to an end.

    Despite supply chain complications and a tough economic environment, a number of Chinese companies had managed to deliver jaw-dropping performance and epic growth.

    With these headwinds turning into tailwinds, there is no telling just how high these stocks will fly.

    The Chinese stocks to buy in this article each point out some of the most promising Chinese companies which are on their way to becoming some of the greatest in the world.

    The best Chinese stock to buy would ultimately depend on your preferences and tolerance.

    FAQs

    Which Brokers Trade Chinese Stocks?

    Many major international brokers offer access to Chinese stocks, including firms like Interactive Brokers, Fidelity, and Charles Schwab.

    What Are the Best Chinese Stocks?

    The best Chinese stocks vary based on individual investment goals and risk tolerance. Top-performing companies often include Alibaba, Tencent, and JD.com.

    Why Invest in Chinese Stocks?

    Investing in Chinese stocks offers exposure to a rapidly growing economy with companies positioned to benefit from a vast consumer base and technological advancements.

    How To Buy Chinese Stocks as A Foreigner Outside China?

    Foreign investors can buy Chinese stocks listed as ADRs on U.S. exchanges or through brokers offering access to international markets, subject to local regulations and restrictions.

  • Top Battered Stocks That Have Potential To Become The Next Amazon

    Top Battered Stocks That Have Potential To Become The Next Amazon

    Investors that were amongst the earliest to hold a sizeable amount of stock for Amazon Inc. (NASDAQ: AMZN) presently find themselves as millionaires, owing to its epic rise in the last decades.

    Their story reflects a dream scenario for most long-term investors that aim to hit gold by buying and holding a similar stock.

    Although in hindsight, it remains near impossible to distinguish between stocks that can rise to the top, against the ordinary.

    Finding the next Amazon stock is a formidable challenge, especially when considering Amazon’s extraordinary growth since its initial public offering (IPO). Amazon went public in May 1997 at a price of $18 per share. After accounting for multiple stock splits, including a significant 20-for-1 split in 2022, the split-adjusted IPO price stands at $0.075 per share. As of April 15, 2025, Amazon’s stock closed at $179.59, representing a staggering increase of over 239,000% from its IPO price.

    Despite the challenges of investment strategies aimed toward this outcome, stocks do show signs of high promise that are worth betting on.

    If one holds a sizeable portfolio of such high-potential stocks, the probability of succeeding rises significantly.

    In this spirit, we present stocks that could potentially repeat an Amazon-inspired success story.

    What Is the Next Amazon Stock?

    Have you ever wondered what company is the next Amazon? Well, you’re not alone! Many investors are constantly on the lookout for the next big thing in the stock market.

    Identifying the next Amazon stock is like finding a diamond in the rough—it requires careful analysis, research, and a touch of intuition.

    Investors are curious because they want to spot that hidden gem, the underdog with immense growth potential.

    It’s all about finding a company that has the potential to disrupt industries, capture market share, and experience exponential growth, just like Amazon did.

    So, let’s dive in and explore the possibilities of what company is the next Amazon!

    Investment Criteria for Battered Stocks

    Investment Criteria for Battered Stocks

    When searching for battered stocks with the potential to become the next Amazon stock, investors should consider a few key criteria:

    • Battered Stock Opportunity

    Look for companies that have experienced significant downturns in their stock prices, presenting a potential upside for investors.

    This will shift your focus toward what company is the next Amazon.

    • Industries Ripe for Disruption

    If you truly want to know what is the next Amazon, focus on sectors with massive growth potential, like e-commerce, cloud computing, or emerging technologies, where the next Amazon could disrupt existing markets.

    • Innovative Products and Competitive Advantage

    Seek companies with innovative products or services, a strong market position, and a sustainable competitive edge. the next Amazon stock should have the ability to capture a substantial market share.

    • Financial Health and Growth Potential

    Evaluate the company’s financials, including revenue growth, profitability, and cash flow, to assess its future prospects.

    Also, consider the management team’s track record and their ability to execute strategies effectively.

    Promising Candidates for the Next Amazon

    1. JD.com (NASDAQ: JD)

    Often referred to as the “Amazon of China,” JD.com continues to solidify its position as a leading e-commerce and supply chain technology company. In 2024, JD.com reported a 6.8% year-over-year increase in net revenues, reaching RMB1,158.8 billion (US$158.8 billion). Net income attributable to ordinary shareholders surged by 71.1% to RMB41.4 billion (US$5.7 billion), highlighting the company’s robust financial performance. ​

    Despite Walmart’s decision to divest its stake in JD.com in 2024, the two companies have maintained a commercial relationship, with Walmart focusing on expanding its Sam’s Club stores in China. JD.com’s strategic investments in logistics, including plans to double its overseas warehouse space by 2025, and advancements in AI, such as the development of its ChatRhino large language model, position the company for sustained growth in the evolving e-commerce landscape. ​

    2. Pinterest Inc. (NYSE: PINS)

    Pinterest has demonstrated significant growth, achieving its first billion-dollar revenue quarter in Q4 2024, with revenues reaching $1.15 billion, an 18% increase year-over-year. The platform’s global monthly active users also grew by 11% to 553 million. ​

    The company’s strategic focus on social commerce, including partnerships with Amazon and Alphabet to display product ads, has enhanced its monetization capabilities. Analysts project that Pinterest’s average revenue per user (ARPU) will grow by 9% annually through 2026, driven by innovations like “deep links” and AI integration. ​

    While Pinterest’s stock has experienced volatility, its consistent revenue growth, expanding user base, and strategic initiatives in social commerce position it as a strong contender for long-term investors seeking the next big opportunity in the tech sector.​

    3. Opendoor Technologies Inc. (NASDAQ: OPEN)

    Opendoor Technologies continues to innovate in the real estate sector by integrating digital solutions with property transactions. In Q4 2024, Opendoor reported a revenue of $1.1 billion, marking a 25.9% increase year-over-year. The company achieved a contribution profit of $38 million, surpassing its guidance range of $15–$25 million. Despite these gains, Opendoor faced a net loss of $392 million for the full year 2024, reflecting ongoing challenges in the housing market. ​

    Opendoor’s commitment to transforming the home-buying experience through technology positions it as a potential leader in digital real estate, akin to Amazon’s impact on e-commerce.​

    4. Jumia Technologies AG (NYSE: JMIA)

    Jumia Technologies, often dubbed the “Amazon of Africa,” operates a leading e-commerce platform across the continent. In Q4 2024, Jumia reported revenues of $45.7 million, a 23% decrease year-over-year, primarily due to macroeconomic challenges. However, the company achieved a positive gross profit after deducting all full shipment expenses, totaling $57.6 million for the year.

    Jumia’s focus on operational efficiency and its strategic position in the underpenetrated African market provide a foundation for long-term growth, mirroring the early stages of Amazon’s expansion.​

    5. Block, Inc. (NYSE: SQ)

    Block, Inc., formerly known as Square, continues to expand its ecosystem of financial services. In Q4 2024, Block reported a gross profit of $2.31 billion, representing a 14% year-over-year growth. The company’s Square and Cash App segments contributed significantly, with gross profits increasing by 15% and 21%, respectively.

    Despite missing revenue and earnings estimates for the quarter, Block’s diversified portfolio, including Afterpay and TIDAL, and its commitment to innovation position it as a formidable player in the fintech space, with potential parallels to Amazon’s disruptive journey.

    6. Roku Inc. (NASDAQ: ROKU)

    Roku continues to solidify its position as a leader in the digital streaming space. In Q4 2024, the company reported revenue of $1.2 billion, surpassing analyst expectations, with platform revenue growing 25% year-over-year to over $1 billion for the first time. The Roku Channel reached nearly 145 million U.S. viewers, reflecting an 82% increase in streaming hours compared to the previous year. ​

    Roku’s strategic initiatives, including the launch of the Roku Data Cloud and expansion into international markets, position it well for continued growth. The company’s focus on advertising, particularly political ad spending, and partnerships with small and medium-sized businesses have enhanced its monetization capabilities.

    7. Workday Inc. (NASDAQ: WDAY)

    Workday has demonstrated robust financial performance, with fiscal 2025 revenues reaching $8.45 billion, a 16.4% increase from the previous year. The company’s 12-month revenue backlog stood at $7.63 billion, exceeding analyst expectations. Workday’s subscription revenue for the fiscal fourth quarter was $2.04 billion, and it anticipates $8.8 billion in subscription revenue for fiscal 2026

    The company’s focus on artificial intelligence and strategic acquisitions, such as HiredScore and Evisort, aim to enhance its product offerings and address evolving market demands. Workday’s commitment to innovation and its diversified client base across various industries position it as a strong contender for sustained growth.​

    8. ServiceNow Inc. (NYSE: NOW)

    ServiceNow reported strong Q4 2024 results, with subscription revenues of $2.87 billion, marking a 21% year-over-year increase. Total revenues for the quarter reached $2.96 billion. The company now has nearly 500 customers with annual contract values exceeding $5 million, reflecting a 21% growth.

    Despite slightly lower-than-expected guidance for 2025, attributed to currency exchange rates and a shift to consumption-based pricing for AI services, ServiceNow remains optimistic about its growth prospects. The company’s emphasis on AI-driven solutions and its substantial customer base underscore its potential for long-term success.

    9. Fiverr International Ltd. (NYSE: FVRR)

    Fiverr is poised to release its Q1 2025 financial results on May 7, 2025, with a conference call scheduled at 8:30 a.m. ET. This upcoming report will provide insights into the company’s performance and strategic direction as it continues to navigate the evolving freelancing landscape.

    As the freelancing market, valued at approximately $247 billion, increasingly shifts to online platforms, Fiverr’s leadership and execution inspire confidence. The company’s focus on profitability and margin leverage is encouraging, especially amid macroeconomic factors affecting small and medium-sized businesses. With its strong performance, stable customer cohorts, and AI integration, Fiverr remains a compelling consideration for long-term investment in the digital marketplace sector.​

    10. Tellurian Inc. (NYSE: TELL)

    In July 2024, Australian energy company Woodside Energy agreed to acquire Tellurian, including its U.S. Gulf Coast Driftwood LNG export project, for $1.2 billion. This acquisition aims to strengthen the position of the U.S. as a leading LNG producer by ensuring the completion of Tellurian’s 27.6 million metric ton per annum facility in Lake Charles, Louisiana.

    Woodside is targeting a final investment decision (FID) for Phase 1 of the Driftwood LNG development opportunity in the first quarter of 2025. The project is fully permitted and has a valid non-free trade agreement (FTA) export authorization. The development plan includes five LNG trains through four phases, with a total permitted capacity of 27.6 million tonnes per annum.

    This strategic move by Woodside, including the acquisition of Tellurian and its Driftwood LNG project, positions the company to capitalize on the growing global demand for LNG, potentially transforming it into a significant player in the energy sector.​

    11. Genelux Corporation (NASDAQ: GNLX)

    Genelux is advancing its lead candidate, Olvi-Vec (olvimulogene nanivacirepvec), a proprietary oncolytic viral immunotherapy designed to target and destroy cancer cells while sparing healthy tissue. In a Phase 2 clinical trial (VIRO-15), Olvi-Vec demonstrated a 54% objective response rate in patients with platinum-resistant or platinum-refractory ovarian cancer, with a median progression-free survival of 11.0 months.

    The U.S. Food and Drug Administration (FDA) has granted Fast Track designation to Olvi-Vec for the treatment of platinum-resistant/refractory ovarian cancer, recognizing its potential to address an unmet medical need. ​

    Genelux’s innovative approach and promising clinical results position it as a strong contender in the immuno-oncology market, with the potential to make significant strides in cancer treatment.​

    12. NIO Inc. (NYSE: NIO)

    NIO, a prominent Chinese electric vehicle (EV) manufacturer, has recently secured substantial investments from Abu Dhabi’s CYVN Holdings. In June 2023, CYVN invested $738.5 million in NIO, acquiring approximately 7% of the company’s outstanding shares. Subsequently, in December 2023, CYVN committed an additional $2.2 billion, increasing its stake to 20.1% and gaining the right to nominate two directors to NIO’s board. ​

    These strategic investments not only bolster NIO’s financial position but also facilitate its expansion into international markets, including the Middle East. With a diversified portfolio of smart electric vehicles and a focus on innovation, NIO is well-positioned to capitalize on the growing global demand for EVs.​

    13. Enovix Corporation (NASDAQ: ENVX)

    Enovix is pioneering the development of advanced lithium-ion batteries featuring a 100% silicon anode design. This technology offers higher energy density and improved performance over traditional graphite-based batteries. The company is preparing for large-scale production in 2025, with its Malaysia-based Fab2 facility set to fulfill key supply agreements.

    Financially, Enovix is well-positioned, having raised $100 million in 2024, providing sufficient funding through September 2025. The global silicon anode battery market is projected to grow significantly, reaching $5.52 billion by 2029, indicating a robust demand for Enovix’s innovative solutions.

    14. Snowflake Inc. (NYSE: SNOW)

    Snowflake has rapidly emerged as a leader in the data cloud industry, with revenues soaring from $100 million to over $2 billion in recent years. The company’s platform integrates data management, analytics, machine learning, and data sharing, catering to a broad range of enterprise needs.​

    With a total addressable market estimated at $248 billion by 2026, Snowflake’s flexible architecture and scalable solutions position it favorably against competitors. While challenges exist, the company’s strong growth trajectory and innovative offerings make it a compelling candidate for long-term investment.

    15. Navitas Semiconductor (NASDAQ: NVTS)

    Navitas Semiconductor is pioneering advancements in power electronics with its gallium nitride (GaN) and silicon carbide (SiC) technologies. In March 2025, the company unveiled the world’s first production-released 650 V bi-directional GaNFast ICs™ and IsoFast™ high-speed isolated gate drivers, marking a significant leap in power conversion efficiency. Additionally, Navitas introduced an 8.5 kW AI data center power supply achieving 98% efficiency, showcasing its commitment to high-performance solutions for emerging markets. ​

    Despite these technological strides, Navitas faces near-term financial challenges. For Q1 2025, the company anticipates revenue between $13 million and $15 million, below the market consensus of $15.8 million. Morgan Stanley has adjusted its price target for Navitas from $2.20 to $2.10, citing industry challenges and an expected revenue gap in the March quarter. Nonetheless, Navitas’s innovative edge and strategic positioning in high-growth sectors like AI, data centers, and electric vehicles underscore its potential for long-term success.​

    16. Stagwell Inc. (NASDAQ: STGW)

    Stagwell Inc. has emerged as a formidable player in the digital marketing and advertising arena. In 2024, the company reported $2.8 billion in revenue, reflecting its robust growth trajectory. Stagwell’s aggressive expansion strategy included 11 acquisitions in 2024, notably enhancing its presence in Asia and the Middle East. The company’s Q4 2024 adjusted EBITDA stood at $123 million, a 30% increase from the prior year, with a 20% margin on net revenue. For 2025, Stagwell projects total net revenue growth of approximately 8%, adjusted EBITDA between $410 million and $460 million, and free cash flow conversion exceeding 45%.

    Stagwell’s focus on digital transformation, coupled with its strategic acquisitions and global expansion, positions it as a potential leader in the evolving digital advertising landscape.​

    17. Vera Therapeutics (NASDAQ: VERA)

    Vera Therapeutics is advancing its investigational therapy, atacicept, for the treatment of IgA nephropathy (IgAN), a rare autoimmune kidney disease. The company has completed full enrollment of 431 participants in its pivotal Phase 3 ORIGIN trial. The trial’s primary endpoint results, focusing on proteinuria reduction at 36 weeks, are anticipated in the second quarter of 2025. Positive outcomes from this trial could lead to a Biologics License Application (BLA) submission to the U.S. FDA in the second half of 2025, with a potential commercial launch in 2026. ​

    Previous Phase 2b results demonstrated that atacicept led to sustained reductions in proteinuria, hematuria, and Gd-IgA1 levels, along with stabilization of kidney function over a 96-week period. These findings position atacicept as a promising first-in-class B cell modulator targeting both BAFF and APRIL pathways in IgAN treatment.​

    18. SentinelOne (NYSE: S)

    SentinelOne, a cybersecurity firm specializing in AI-driven threat detection, reported a 29% year-over-year revenue increase in the fourth quarter of fiscal year 2025, reaching $225.5 million. The company’s annualized recurring revenue (ARR) grew by 27% to $920.1 million. Notably, SentinelOne achieved its first quarter of positive non-GAAP operating margin at 1%. ​

    The company continues to innovate with its Singularity platform, integrating advanced AI capabilities for autonomous security operations. Despite facing stiff competition from industry giants, SentinelOne’s strategic partnerships and technological advancements position it as a formidable player in the cybersecurity landscape.​

    19. Plug Power (NASDAQ: PLUG)

    Plug Power is making significant strides in the green hydrogen sector. The company has entered into a purchase agreement with Allied Green Ammonia (AGA) to supply 3 GW of electrolyzer capacity for a green hydrogen-to-ammonia plant in Australia. This facility aims to produce approximately 2,700 metric tonnes of green ammonia daily, powered by a 4.5 GW solar plant. ​

    Additionally, Plug Power is collaborating with Avina Clean Hydrogen to deliver containerized PEM electrolyzer systems for a green hydrogen production facility in Southern California. This project is designed to produce up to 2 metric tons of green hydrogen per day, supporting the decarbonization of heavy-duty transportation in the region. ​

    What’s the Chance for a Recession in 2025?

    As of April 2025, the probability of a U.S. recession within the next 12 months remains a topic of debate among economists and financial institutions. Goldman Sachs has recently raised its recession probability estimate to 45%, citing increased policy uncertainty and the impact of new tariffs introduced by the Trump administration . Similarly, JPMorgan Chase CEO Jamie Dimon has indicated a 50% chance of a recession, pointing to factors such as trade tensions and inflationary pressures.

    In contrast, Kevin Hassett, Director of the National Economic Council, has expressed strong confidence in the U.S. economy, asserting there is “100% not” a chance of a recession this year . He highlights robust job numbers and positive business sentiment as indicators of economic strength.

    Regarding economic growth, forecasts for U.S. GDP in 2025 vary. The Federal Reserve Bank of Atlanta’s GDPNow model estimates a contraction of 2.4% for the first quarter , while Deloitte projects a more optimistic annual growth rate of 2.9% . These disparities reflect the uncertainty surrounding the economic outlook, influenced by factors such as trade policies and global market conditions.

    In summary, while some indicators suggest resilience in the U.S. economy, the potential for a recession cannot be ruled out, especially given the current policy environment and global economic challenges. Investors should remain vigilant and consider these factors when making investment decisions.

    How Do I Find the Best Stocks to Buy?

    What's The Chance for A Recession This Year

    Based on a recent survey conducted by The Wall Street Journal, the likelihood of a recession occurring within the next 12 months has decreased from 61% to 54%.

    It’s the biggest drop since August 2020.

    The economy has shown resilience despite interest rate hikes and cooling inflation.

    Economists even expect GDP to grow at a 1.5% annual rate in Q2. So, while a recession is still possible, things are looking up, which bodes well for our investment pursuits.

    While we can’t predict the future with absolute certainty, it’s encouraging to see economists becoming more positive about the economic landscape.

    As we search for the next Amazon among the battered stocks, a lower probability of a recession can certainly give us some added confidence.

    Keep your eyes peeled and your investment strategies sharp because opportunities may be on the horizon.

    How Do I Find the Best Stocks to Buy?

    How Do I Find the Best Stocks to Buy

    Identifying the best stocks to buy—especially ones that could mirror Amazon’s trajectory—requires more than just watching headlines. It demands a strategic, data-driven approach.

    1. Look for Category Disruptors: The best-performing stocks often belong to companies that are reshaping industries—whether it’s through technology, logistics, data, or energy. Ask yourself: Is this company solving a major problem in a unique way?
    2. Focus on Fundamentals: Examine key metrics such as revenue growth, earnings per share, free cash flow, and profit margins. Companies that show strong financial performance during both bull and bear markets are often resilient long-term bets.
    3. Track Insider and Institutional Activity: Pay attention to insider purchases and institutional ownership. Heavy accumulation by hedge funds or mutual funds often signals confidence in a company’s long-term prospects.
    4. Use Screeners and AI Tools: Leverage stock screeners that filter by valuation, growth potential, sector performance, and analyst sentiment. AI-driven platforms can uncover early-stage momentum that manual analysis might miss.
    5. Don’t Ignore Battered Stocks: Stocks trading at a discount due to market overreaction, economic headwinds, or temporary revenue slowdowns can present incredible upside when fundamentals are strong.

    By combining these principles, you can build a portfolio of potential breakout stocks—some of which could become the next Amazon-level success story.

    Conclusion

    The journey to uncover the next Amazon is not about chasing hype—it’s about spotting the hidden winners before the market fully wakes up to their potential.

    From e-commerce giants like JD.com and Jumia, to biotech disruptors like Vera Therapeutics and Genelux, and infrastructure innovators like Plug Power and Navitas, this list highlights companies that are tackling huge markets with scalable solutions. Their current valuations may not reflect their future dominance, which is what creates the window of opportunity for early investors.

    As we’ve seen with Amazon, extraordinary returns are possible—but only for those with vision, patience, and a willingness to act when others hesitate. In a world where market volatility, recession fears, and AI disruption dominate headlines, the best strategy is to stay informed, diversified, and alert.

    Because the next Amazon isn’t just a possibility—it’s out there, and it’s only a matter of time before it takes off.

    FAQs

    What Company Is the Next Amazon?

    The next Amazon could be an underdog with disruptive ideas, poised to revolutionize an industry and capture market share.

    What Stock Will Be the Next Amazon?

    It is challenging to identify a specific stock that will be the next Amazon, as stock performance is influenced by multiple variables and market dynamics.

    Keep an eye on companies with innovative products, visionary leadership, and a hunger for growth.

  • Rising U.S.-China Trade Tensions – How Alibaba, Baidu, JD.com Will Survive

    Rising U.S.-China Trade Tensions – How Alibaba, Baidu, JD.com Will Survive

    The trade dispute between the US and China may have an indirect and direct effect on the largest Chinese e-Commerce firms, Alibaba, Baidu, JD.com.

    The trade restrictions set by the U.S. for the world’s largest economy may have a significant effect on the production costs of American goods and components in that country, which are advertised by these online trading platforms. Technological collaboration may also be limited by sanctions.

    Foxconn is the largest assembly site for Apple products, but the company has decided to move the production of MacBook laptops and iPad tablets from China to Vietnam. The increase in import duties due to the Beijing-Washington dispute economically justifies the removal of much of the assembly’s potential outside China.

    Mostlt the Chinese vendors sell goods on Alibaba, Baidu, JD.com. The relocation of these and other manufacturing sites will not lead to a decrease in turnover, but will restrict growth.

    Large businesses are interested in the low labor costs in other Southeast Asian countries in addition to the need to diversify risks. In China, the overall average salary was over $500, and in cities it was over $1000. The trend in wage increases and other optimistic labor market developments is increasing the price of costs and other costs.

    A prohibition on doing business in the United States is the biggest challenge for Alibaba. Maintaining and improving revenue in the western markets is an important challenge for Alibaba and Baidu. In the home market, growth continues, but is very constrained. Alibaba’s revenue increased 30.3 percent year-on-year in the third quarter to 155 billion yuan, driven largely by expansion abroad.

    For those American businesses that refuse to remove production from abroad, Donald Trump has threatened tariffs. There are no plans for Joe Biden to moderate his rhetoric on China yet. Former US Secretary of State Mike Pompeo called on U.S. companies to sever relations with Chinese partners, including Alibaba, Tencent and Baidu cloud computing providers under the Clean Network Initiative.

    Amazon is competing with Alibaba, but the two online shopping firms very effectively share the global market. In the online shopping market, JD.com and Baidu remain more local players. Competitors for Alibaba include ByteDance, the owner of TikTok, which launched its e-commerce business in June. JD.com, on the B2C model, one of the biggest retailers in the Chinese online market, extends the range and organizes a distribution service. During a large-scale sale, the business managed to collect record revenues.

    A possible danger is also the Chinese corporate sector’s heavy debt load. In November, several large companies, including e-commerce suppliers, especially Tsinghua Unigroup, announced technical defaults. The country’s authorities did not provide timely assistance to companies with state involvement, which caused a significant blow to the Chinese debt sector.

    A wide range of Chinese bonds experienced pressure from sellers after the mentioned wave of technical defaults. The businesses we are considering, however, do not have credit risks today. The debt/equity ratio of Alibaba is 14.78 percent, and Baidu is 42.15 percent. But it could be hard for many of the sellers to pay the debt.

    The yuan could be improved by reducing the export capacity and revenues of Alibaba, Baidu and JD.com. It reached the highest level since June 2018 at the beginning of December, after which it stopped strengthening, but traders expected growth driven by the Chinese economy’s recovery, to continue. To date, Beijing has not taken aggressive steps to curb the national currency, which, from the current 6.53, is able to strengthen against the dollar to 6.68-6.7.

    Pre-election political intrigues involving big companies are more relevant than the economic concerns of importers, with good reporting by Alibaba, Baidu and JD.com for investors. Due to China’s optimistic exit from the crisis triggered by the pandemic, we foresee a two-fold rise in revenues of all three companies over the next year.