In this article, we will take a look at the 10 Best Chinese Stocks to Buy According to Billionaires.
The People’s Bank of China’s (PBoC) monetary easing and government stimulus have lifted the valuations of Chinese equities. A few months ago, many investors were expecting the U.S. economy to be in a better position and Chinese stocks were facing significant regulatory worries. However, the tables have turned with the Chinese economy expected to be in a better position compared to 2024.
A Positive Outlook for China
Things have taken a wild turn with the U.S. president imposing high tariffs and investors expecting an economic slowdown in the U.S. On the other hand, China’s advancement in AI and its capabilities to grow its AI infrastructure have intensified since the launch of DeepSeek’s R1 model.
“The U.S. has had a good period, and that’s coming to an end because Trump’s policies are very anti-economy. China has had a very bad period, but it looks as if it’s starting to recover,” Richard Harris, CEO of Port Shelter Investment Management, told CNBC.
Chinese government support for its technology sector has induced much optimism among investors. The Hang Seng Tech Index, which tracks some of the largest Chinese companies listed in Hong Kong, has soared over 21% year-to-date, as of March 25. At the same time, the NASDAQ 100 index, covering the U.S. tech stocks, has plunged over 3.70%. Whereas, the Shanghai Composite Index has risen over 3% compared to a drop of 1.70% in the S&P 500 index.
“Performance of the HSCEI/MSCI China in the past 17 months trended closely to the trajectory a decade ago, making us worry that we might be approaching some correction soon,” analysts at the Bank of America wrote in a report published on March 17.
Harris believes that China’s A shares have been quite depressed for some time compared to the U.S. stocks. With valuation improvements and optimism in the tech sector in China, it is a good time to explore Chinese stocks.
With that, let’s take a look at the 10 Best Chinese Stocks to Buy According to Billionaires.
A close-up view of a financial banker focused on their computer, tracking the performance of the Chinese equities market.
Our Methodology
To compile our list of the best Chinese stocks to buy according to billionaires, we looked for the Chinese stocks widely held by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 10 best Chinese stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them. We have also mentioned the number of hedge funds that held these stocks as of Q4 2024.
Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Chinese Stocks to Buy According to Billionaires
10. H World Group Limited (NASDAQ:HTHT)
No. of Billionaire Investors: 9
Total Billionaire Stake: $162.1 Million
No. of Hedge Fund Holders: 29
H World Group Limited (NASDAQ:HTHT) owns and operates multi-brand hotels worldwide. The company operates through two main segments including Legacy DH and Legacy Huazhu. Its brand portfolio includes Midscale Hotels, Economy Hotels, Upscale Hotels, and others. H World Group owns, leases, and franchises its hotel chains. The company owns Joya Hotel, Ni Hao Hotel, JI Hotel, Orange Hotel, and various others.
H World Group Limited (NASDAQ:HTHT) achieved key milestones in 2024. The company ended the year with a record 2,442 new hotel openings, reaching a total of 11,147 hotels by the end of 2024. The company has another 3,013 hotels in the pipeline. H World Group continues to accelerate its fast network expansion in China following the 10,000-hotel milestone in 2024. Legacy Huazhu opened over 2,400 new hotels, exceeding the initial target of 1,800 hotels. The company’s core business segment experienced a high occupancy rate of 81.2%, driven by the speed of HTHT’s network expansion. All these developments helped the company to achieve a full-year revenue of $3.3 billion, a 9.2% growth from a year ago. Full-year adjusted EBITDA totaled around $935 million, an increase of 8.8% year-over-year.
In 2024, H World Group Limited returned approximately $767 million to shareholders through share repurchases and dividends. Moving ahead, the company continues to improve its hotel operations, focusing on cost reduction and efficiency improvement.
9. Baidu, Inc. (NASDAQ:BIDU)
No. of Billionaire Investors: 9
Total Billionaire Stake: $265.1 Million
No. of Hedge Fund Holders: 50
Baidu, Inc. (NASDAQ:BIDU) is a Chinese Internet search provider, also known as the Chinese Google. It offers a Chinese-language search platform that allows users to search for information online. The company operates through two segments including the Baidu Core segment and the iQIYI segment. Its core segment provides products and services including Mobile Ecosystem, Baidu AI Cloud, and Intelligent Driving & Other Growth Initiatives. Whereas, iQIYI functions as an online entertainment service provider.
Baidu, Inc. (NASDAQ:BIDU) recently launched two new AI models, ERNIE 4.5 and ERNIE X1, making them freely available to individual users ahead of schedule. These AI models will be available from ERNIE Bot’s official platform, aiming to enhance user involvement across its platforms. Baidu plans to combine these models into its larger ecosystem including Baidu Search and the Wenxiaoyan app.
On February 19, Benchmark analyst Fawne Jiang reiterated a Buy rating on BIDU shares, maintaining the price target at $130 per share. Jiang believes that the growing adoption of GenAI in China, driven by advancements from DeepSeek, will have a positive impact on companies such as Baidu. With a robust gross margin of 50.35% and annual revenue of $18.29 billion in 2024, Baidu’s strategy to open-source its ERNIE 4.5 series and provide free access to ERNIE Bot will increase broader adoption of these technologies.