10 Best Chinese Stocks to Buy Right Now

6. KE Holdings (NYSE:BEKE)

Hedge Funds Holding Stakes: 43

Stock Upside Potential: 52.16%

Headquartered in Beijing, China, KE Holdings (NYSE:BEKE) operates an integrated online and offline platform for housing transactions and services. The company operates Beike, an integrated online and offline platform for housing transactions and services, and Lianjia, a real estate brokerage branded store. It also owns the Deyou brand for connected brokerage stores and other brands.

KE Holdings (NYSE: BEKE) operates 8,000 offices in China and manages over 500,000 rental apartments. Despite a severe real estate downturn, it has increased market share in both existing and new homes markets. This success is due to its Agent Cooperation Network (ACN), which standardized transactions and promotes agent cooperation, and its trusted brand, Lianjia, known for authentic property listings.

The Chinese digital and brick-and-mortar real estate marketplace reported revised earnings per share of $2.28, far exceeding the market’s average forecast of $1.60 in the second quarter. Its income rose 19.9% compared to the previous year, reaching RMB23.4 billion ($3.2 billion), surpassing the market’s prediction of RMB22.04 billion.

KE Holdings (NYSE:BEKE)’s impressive performance was fueled by an increase in its current home transaction services and the growth of its home renovation and rental divisions. The income from current home transactions saw a 14.3% year-over-year increase to RMB7.3 billion ($1.0 billion), while the income from home renovation and furnishing services jumped by 53.9% to RMB4.0 billion ($0.6 billion).

While trading at a price-to-earnings multiple of 16, KE Holdings (NYSE:BEKE) is one of the best Chinese stocks to buy for gaining exposure in the Chinese real estate sector. Analysts hold an average price target of $22.52 on the stock, implying a 52.16% upside potential from current levels.  As of the end of the second quarter, 43 hedge funds tracked by Insider Monkey held stakes in the company.