10 Best Chinese Stocks to Buy Right Now

1. H World Group (NASDAQ:HTHT)

Hedge Funds Holding Stakes: 24

Stock Upside Potential: 89.25%

H World Group (NASDAQ:HTHT) is a consumer cyclical company that develops leased and owned franchised hotels in China. It operates a diversified portfolio of hotel brands in the economy and upscale segments, generating management fees and franchise fees.

The primary driver behind H World Group’s (NASDAQ:HTHT)’s growth is its bold approach towards expansion. By March 31, 2024, the organization managed a network of 9,817 hotels, encompassing 955,657 rooms across 18 nations. This growth is propelled by natural expansion and strategic mergers, like the purchase of Deutsche Hospitality, which has greatly enhanced its footprint in Europe. The company’s ability to adjust to evolving market trends and capitalize on its broad range of brands positions it favorably for continued expansion.

H World Group (NASDAQ:HTHT) delivered solid financial results in the first quarter, whereby earnings rose by 17.8% compared to the same period the previous year, reaching RMB5.3 billion (US$731 million). The increase was attributed to a resurgence in travel demand and effective control over expenses. The firm’s earnings for the quarter amounted to RMB659 million (US$91 million).

Analysts on Wall Street currently rate the stock as a Buy with an average price target of $53.43, suggesting an 89.25% upside potential from current levels. Additionally, H World Group (NASDAQ:HTHT) rewards investors with a 2.195 dividend yield.

According to Insider Monkey’s second-quarter database, 24 hedge funds were bullish on H World Group (NASDAQ:HTHT), compared to 34 funds in the prior quarter.  Insider Monkey database indicates that 24 hedge funds held stakes in the company as of the end of Q2 2024.

The best Chinese stocks to buy now offer some of the best ways of diversifying an investment portfolio into the Chinese economy. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than NVDA, check out our report about the cheapest AI stock.

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