10 Cheap Chinese Stocks to Buy Now

3. JD.com, Inc. (NASDAQ:JD)

Forward P/E Ratio: 10

Earnings Growth This Year: 34.61%

Number of Hedge Fund Holders: 78

JD.com, Inc. (NASDAQ:JD) is a major e-commerce company based in China. The company has become a leading player in the e-commerce segment through its robust supply chain networks. It sells a wide range of products online, including electronics, home appliances, fashion items, books, and more. Moreover, its strong logistics allow it to deliver products quickly and efficiently.

On March 3, Jiong Shao from Barclays maintained a Buy rating on the stock, with a price target of $55. During the fiscal third quarter of 2024, JD.com, Inc. (NASDAQ:JD) grew its revenue by 5% year-over-year, the improvement was driven by growth in general merchandise and electronic categories. Benefitting from its logistics and networking advantage the company improved its gross profits by 16%.

Ariel Global Fund in its Q4 2024 investor letter stated that the stock price of JD.com, Inc. (NASDAQ:JD) was negatively affected by investors taking profits after solid earnings and concerns about tariffs impacting the Chinese economy. This short-term volatility was seen as contrary to the company’s strong business fundamentals. The fund noted that despite short-term volatility they remain optimistic about the company’s long-term growth prospects. It is one of the cheap Chinese stocks to buy now.

Here’s what Ariel Global Fund stated regarding JD.com, Inc. (NASDAQ:JD) in its Q4 2024 investor letter:

“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) also detracted from performance over the quarter. The stock came under pressure as some investors took profits on solid earnings performance, while others became concerned with the implications tariffs could have on the Chinese economy. In our view, this share price action runs counter to the company’s solid business fundamentals. The home appliance trade-in program and popular shopping event, Singles’ Day, generated significant consumer spending across various product categories. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business, and monetize advertising streams continues to aid the top and bottom-lines. Despite the near-term noise, we continue to view the company’s strategic positioning favorably and like JD.com’s long-term growth prospects.”