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.
8. Qifu Technology, Inc. (NASDAQ:QFIN)
No. of Billionaire Investors: 10
Total Billionaire Stake: $178.9 Million
No. of Hedge Fund Holders: 30
Qifu Technology, Inc. (NASDAQ:QFIN), formerly known as 360 DigiTech Inc., is a Chinese company that is engaged in credit technology services. It connects individuals and businesses to borrow money with banks and assists these institutions evaluate the creditworthiness of borrowers, match funds, and manage loans after they are issued. Qifu also provides platform services to financial institutions including loan assistance, intelligent marketing, referral services, and risk management.
Qifu Technology, Inc. (NASDAQ:QFIN) ended 2024 on a high note as the company posted a record non-GAAP net income of RMB 1.97 billion, up by 71.5% year-over-year. Whereas, the full-year net income was around RMB 6.42 billion, a 44% increase from a year ago. Qifu improved its user acquisition efficiency, with a 16.2% year-over-year rise in new borrowers and a 5.3% decline in average acquisition cost per credit line user. The company also recorded a notable improvement in asset quality, with a decline in the D1 delinquency rate and an increase in the 30-day collection rate. Qifu executed a $410 million share repurchase program in 2024.
Earlier in December, Analyst Manyi Lu from DBS noted that he is expecting Qifu to report a mid-single-digit earnings growth for the fiscal years 2025 and 2026.
7. Futu Holdings Limited (NASDAQ:FUTU)
No. of Billionaire Investors: 10
Total Billionaire Stake: $213.2 Million
No. of Hedge Fund Holders: 38
Futu Holdings Limited (NASDAQ:FUTU) is a financial technology company that mainly operates digital brokerage platforms. Its platform, Futu NiuNiu, allows users to trade various securities, including stocks, options, and ETFs. Futu has operations in China, the U.S., Hong Kong, Singapore, Australia, and Japan.
Futu Holdings Limited (NASDAQ:FUTU) recently posted the full-year and Q4 2024 results. The company exceeded its full-year guidance by adding 215,000 paying clients during the last quarter, resulting in a total of more than 2.4 million paying clients, a 41% increase from a year ago. Futu achieved a full-year revenue of HKD 13.6 billion, a growth of 36% year-over-year. The company posted a significant increase in total client assets during Q4, reaching HKD 743 billion, up 43% from a year ago. Futu launched several product innovations last year, including U.S. margin trading in Japan and an option strategy builder in the U.S., improving its trading platform capabilities.
As Futu Holdings Limited maintains strong growth in overseas markets, UBS analyst Charles Zhou kept a Buy rating on FUTU shares, with an upgrade in price target from $130 to $136. Whereas, JP Morgan analyst Katherine Lei maintained an Overweight rating on FUTU, increasing the price target from $160 to $170.
6. Trip.com Group Limited (NASDAQ:TCOM)
No. of Billionaire Investors: 10
Total Billionaire Stake: $651.3 Million
No. of Hedge Fund Holders: 51
Trip.com Group Limited (NASDAQ:TCOM) is a premier online travel agency (OTA) that is mainly engaged in the operation of a one-stop travel platform. Trip.com Group’s platform integrates a comprehensive suite of travel products and services and differentiated travel content. The company operates under two primary brands: C-Trip, which dominates the Chinese travel market, and Trip.com, its rapidly expanding international arm.
Trip.com Group Limited (NASDAQ:TCOM) posted strong results in 2024, especially in the international segment, which experienced revenue growth of 70% year-over-year. The international expansion holds much importance for Chinese companies as investors value international revenue streams at a premium compared to Chinese earnings. In 2024, the company posted a net revenue of RMB 53.3 billion, a 20% increase from a year ago.
TripGenie, an AI tool, experienced a 200% increase in traffic and a 100% surge in browsing time in 2024. This shows how users are welcoming Trip.com’s AI tool, using it to manage their trips. The company also saw outbound hotel and air ticket bookings exceed 2019 levels by 120%, outperforming the industry by 30% to 40%.
5. KE Holdings Inc. (NYSE:BEKE)
No. of Billionaire Investors: 11
Total Billionaire Stake: $526.60 Million
No. of Hedge Fund Holders: 47
KE Holdings Inc. (NYSE:BEKE) is focused on operating an integrated online and offline platform for housing transactions and services. KE is a pioneer in building the infrastructure and standards to reinvent how Chinese service providers and customers complete housing transactions. It is well-placed to benefit from the Chinese government’s focus on stabilizing the broader real estate market.
Policies stimulating market activity or increasing buyer confidence directly translate to higher transaction volumes for KE Holdings Inc. In 2024, the company achieved significant growth in active stores, rising by over 80% year-over-year to nearly 49,700. The company posted a record total revenue of RMB 93.5 billion for the full year, marking a growth of over 20% from a year ago. KE’s home renovation and furnishing business experienced 36% revenue growth, reaching RMB 40.8 billion, with improvements in supply chain management and reduced construction timelines. The company’s home rental services revenue soared to RMB 14.3 billion, a rise of 135% year-over-year, driven by improvements in operational efficiency and tenant experience.
KE Holdings Inc. (NYSE:BEKE) ended the year with a robust cash position, including a net operating cash inflow of RMB 9.4 billion in 2024. On March 19, Morgan Stanley analyst Andrew Tsai maintained an Overweight rating in BEKE shares, increasing the price target from $19 to $27. This price upgrade follows a valuation update to the year 2025 and a reduction in the weighted average cost of capital (WACC) from 14% to 12%. Tsai’s improved price target is based on a 23 times multiple of BEKE’s projected 2025 non-GAAP earnings per share.
4. NetEase, Inc. (NASDAQ:NTES)
No. of Billionaire Investors: 11
Total Billionaire Stake: $627.8 Million
No. of Hedge Fund Holders: 38
NetEase, Inc. (NASDAQ:NTES) is a leading internet technology company developing and operating some of China’s most famous mobile and PC-client games. The company operates popular international online games in China through collaborations with global game developers such as Blizzard Entertainment. The company also operates online learning services, smart devices, and marketing tools through its Youdao platform. NetEase Cloud Music offers online music streaming services with membership subscriptions.
NetEase, Inc. (NASDAQ:NTES) had mixed results in 2024, while surpassing the full-year earnings estimates, it missed revenue consensus estimates. The company posted an EPS of $7.14, exceeding estimates of $6.84. The revenue came in at $14.51 billion, missing the estimated $14.58 billion. On the bright side, the Gaming segment performed better compared to 2023. The online games revenue reached RMB 80.4 billion for 2024, up 6% from a year ago. The PC client games also experienced a 17% growth year-over-year.
On March 3, Morgan Stanley analyst Yang Liu CFA maintained a Buy rating on NTES shares, keeping the price target at $117. The analyst highlighted that NetEase’s strategic move to relaunch Condor Heroes 2.0 will revitalize a previously underperforming game. The improvements in the features of the game seem to be attracting more players. Barclays analyst Jiong Shao kept an Equal-weight rating on NTES with a price target increase from $82 to $104 on Feb. 24.
Polen Emerging Markets Growth Strategy stated the following regarding NetEase, Inc. (NASDAQ:NTES) in its first quarter 2024 investor letter:
“NetEase, Inc. (NASDAQ:NTES) is one of the top players in China’s video game industry and saw decent revenue growth in 2023, particularly in its games division, with profit growth close to 20%. The stock also continues to recover after gaming restrictions announced last quarter in China were not nearly as bad as first feared.”
3. Alibaba Group Holding Limited (NYSE:BABA)
No. of Billionaire Investors: 17
Total Billionaire Stake: $2.61 Billion
No. of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese multinational technology company with strong market positions in e-commerce, cloud computing, and digital payments. It also has operations in logistics, entertainment, and enterprise solutions. The company’s primary businesses include Alibaba, Taobao, Tmall, and Alibaba Cloud, which together handle millions of businesses and consumers worldwide.
The company has committed nearly $53 billion towards developing AI and cloud computing infrastructure over the next three years. Alibaba’s cloud business continues to gain momentum, soaring by 13% year-over-year in Q4 2024, with AI-related revenue recording a triple-digit growth for the sixth consecutive quarter. The company’s overall profitability remains solid, with adjusted EBITA margins around 20%, driven by robust Cloud Intelligence and TTG’s EBITA growth.
Alibaba Group Holding Limited (NYSE:BABA) is well-positioned to take advantage of the growing AI and cloud market, backed by its planned infrastructure investments. In addition, the company’s FCF remains solid.
Baron Funds, an investment management firm, shared its “Baron Emerging Markets Fund” Q4 2024 investor letter, maintaining a positive view on Alibaba despite its underperformance in the last quarter of 2024. They commented:
“We retain conviction that Alibaba is well positioned to benefit from China’s ongoing growth in online commerce and cloud in China, though competitive market concerns remain.”
2. JD.com, Inc. (NASDAQ:JD)
No. of Billionaire Investors: 18
Total Billionaire Stake: $1.82 Billion
No. of Hedge Fund Holders: 78
JD.com, Inc. (NASDAQ:JD) is a top Chinese e-commerce and supply chain company. It operates one of China’s largest e-commerce platforms, competing with Alibaba and Pinduoduo. The company also offers logistics, digital solutions, and asset management services to businesses. With operations in logistics and controlling the supply chain, JD differentiates itself from its competitors through a focus on quality and a direct-sales model.
JP Morgan analyst Andre Chang increased the price target on JD from $50 to $55, maintaining an Overweight rating on the shares. Following strong Q4 results, the analysts remain optimistic about the company’s future earnings. JD.com, Inc. (NASDAQ:JD) posted a revenue of $147.5 million in Q4 2024, up by 13.4% from a year ago, with full-year revenue up 6.8% to $158.8 billion. The company exceeded full-year revenue estimates by $3.36 billion. JD.com also surpassed the 2024 earnings estimate of $4.10, posting an EPS of $4.29 per share.
1. PDD Holdings Inc. (NASDAQ:PDD)
No. of Billionaire Investors: 21
Total Billionaire Stake: $2.15 Billion
No. of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is another Chinese e-commerce giant and one of China’s fastest-growing e-commerce companies. PDD is mainly recognized for its social commerce platform, Pinduoduo. The company has made its place among other e-commerce leaders in China including Alibaba and JD.com. PDD is integrating into global markets through its e-commerce platform, Temu.
On March 21, JP Morgan analyst Andre Chang raised the price target of PDD shares from $105 to $125, maintaining a Neutral rating on the stock. The analyst has raised the price target of PDD following a strong Q4 2024 and full-year results. PDD Holdings Inc. (NASDAQ:PDD) posted a revenue of RMB 110.6 billion for the quarter and RMB 393.8 billion for the full year, growing by 24% and 59% year-over-year, respectively. Logistics support measures helped PPD grow a double-digit order volume in remote regions, expanding free shipping to almost 100 million consumers.
PDD Holdings Inc. continues to invest in logistics and technology to improve its operations. It is also focused on improving supply chain efficiency, agricultural e-commerce, and AI-powered recommendation engines.
While we acknowledge the potential of PDD to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PDD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
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