In this article, we will look at the 10 Cheap Chinese Stocks to Buy Now.
Chinese Market Outlook 2025
On February 12, Russell Investment released its Chinese market outlook for 2025. The investment firm noted that the outlook for China in 2025 is marked by several key factors, including the potential for new stimulus measures, advancements in artificial intelligence, and the impact of US tariffs on Chinese exports. Investors are closely watching whether the Chinese government will implement additional economic support measures, similar to those seen in 2024. This year, however, the landscape is complicated by the introduction of the DeepSeek AI model and the imposition of US tariffs on Chinese goods.
As per the report, the property sector remains a significant drag factor to China’s economy, with developers facing pressure and consumers cautious about purchasing property. Despite this, there are tentative signs of improvement in secondary home transactions, suggesting that supportive measures from 2024 may be starting to take effect. However, consumer confidence remains low, nearing the lows of the past four years. Moreover, the economy is also at risk of deflation, which could lead consumers to delay major purchases in anticipation of further price drops.
Russell Investment further noted that the National People’s Congress meeting in March will be crucial, as it will announce the economic growth target for the year and any new policy measures. If a growth target of around 4.5% is set, substantial stimulus measures may be required to achieve it. The United States has imposed a 10% tariff on Chinese imports, which China has responded to by placing tariffs on $14 billion worth of US goods. These tariffs are expected to reduce China’s GDP growth by about 0.3 percentage points.
On the bright side, China has seen significant advancements in AI, with companies like DeepSeek achieving notable gains. However, the export embargo on major chip manufacturers by the US poses a challenge to further AI development in China. The focus is likely to shift towards efficiency improvements in AI capabilities. Russell Investments views the outlook for Chinese equities as marginally positive. This assessment is based on a cycle, valuation, and sentiment framework. Despite economic uncertainties, Chinese companies have improved their return on equity, and analysts expect about 9% earnings-per-share growth in 2025. Valuations for Chinese equities appear reasonable compared to other emerging markets, with forward multiples at around 10 times and a PEG ratio at the 15th percentile historically.
With that let’s take a look at the 10 cheap Chinese stocks to buy now.
A close-up view of a financial banker focused on their computer, tracking the performance of the Chinese equities market.
Our Methodology
To compile the list of 10 cheap Chinese stocks to buy now, we used the Finviz stock screener, Yahoo Finance, and Seeking Alpha. Using the screener we aggregated a list of stocks trading below the forward P/E of 15 and earnings growth expectations this year. Next, we cross-checked the Forward P/E from Seeking Alpha and Earnings growth from Yahoo Finance. Lastly, after sorting our list by market capitalization, we ranked the stocks in ascending order based on the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 database of hedge funds.
Why are we interested in the stocks that hedge funds 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 Cheap Chinese Stocks to Buy Now
10. FinVolution Group (NYSE:FINV)
Forward P/E Ratio: 6.06
Earnings Growth This Year: 9.59%
Number of Hedge Fund Holders: 13
FinVolution Group (NYSE:FINV) is a fintech company based in China that operates an online platform for consumer finance. Its services include various types of loans for individuals and investment services for individual investors to invest. The company also links borrowers with investors and also helps assess the creditworthiness of borrowers before loans are issued.
During the fiscal third quarter of 2024, the company indicated its interest in increasing its international revenue to 50% of its total revenue by 2030. It has already made significant progress as the international revenue has grown from 3.7% in 2020 to around 20% in 2024. FinVolution Group (NYSE:FINV) operates in China, Indonesia, and the Philippines, and recently entered Pakistan. Indonesia is its largest international market, contributing about 70% of its international revenue. The company leverages technology to improve operations and security. It has developed solutions to combat deep fake voice scams and integrated AI into its loan collection processes, enhancing recovery rates.
As of September 2024, the company had served 32.6 million borrowers across its markets. Moreover, the number of unique international borrowers grew significantly, reaching 2.1 million in the first nine months of 2024. FinVolution Group (NYSE:FINV) is focusing on providing loans to small businesses, during the fiscal third quarter of 2024, it empowered 447,000 small business owners with loans. It is one of the cheap Chinese stocks to buy now.
9. Dingdong (Cayman) Limited (NYSE:DDL)
Forward P/E Ratio: 13.49
Earnings Growth This Year: 1,367.71%
Number of Hedge Fund Holders: 16
Dingdong (Cayman) Limited (NYSE:DDL) is a Chinese e-commerce company that specializes in delivering groceries and daily necessities directly to consumers. The company provides a range of products including fresh produce, meat, seafood, and other household essentials, sourcing these products directly from farms and cooperatives to ensure freshness and quality. Dingdong (Cayman) Limited (NYSE:DDL) uses a network of over 950 fulfillment stations across 29 cities in China. This setup allows them to deliver orders quickly, often within 30 minutes.
During the fiscal third quarter of 2024, the company increased its gross merchandising value by 28.3% year-over-year, setting a new quarterly high of RMB 7.27 billion. The increased number of transacting users and purchase frequency resulted in the revenue increasing by 27.2% during the same time. In addition to financial achievements, Dingdong (Cayman) Limited (NYSE:DDL) expanded its fulfillment centers, enhancing operational efficiency and contributing to revenue growth. Management has raised net profit and scale expectations compared to that in the last quarter and is expecting considerable year-over-year growth in the fourth quarter. The company is set to release its Q4 2024 results on March 6, 2025. It is one of the cheap Chinese stocks to buy now.
8. iQIYI, Inc. (NASDAQ:IQ)
Forward P/E Ratio: 8.26
Earnings Growth This Year: 21.01%
Number of Hedge Fund Holders: 20
iQIYI, Inc. (NASDAQ:IQ) is a Chinese company that primarily offers online entertainment services. The company provides a wide range of video content, including movies, TV dramas, variety shows, and anime through its app. Moreover, it also operates a social media platform called iQIYI Paopao, where fans can interact with celebrities and the entertainment community.
On February 23, Saiyi He, an analyst at CMB International Securities maintained a Buy rating on the stock, with a price target of $2.80. The analyst noted that despite a decline in revenue and operating income in 2024, the company showed signs of recovery starting in December. This was largely due to the successful launch of high-quality drama series, which strengthened the company’s position in the drama market and increased membership business. Moreover, He noted that for early 2025, iQIYI, Inc. (NASDAQ:IQ) anticipates quarterly revenue growth driven by increases in both membership and performance-based advertising revenues. The company plans to expand its portfolio of top-tier drama series and mini-dramas to enhance ad placement systems, boost ad inventory, and increase revenue.
With a cheap valuation indicated by a forward P/E ratio of 8.2 and earnings growth at 21%, the company ranks as one of the cheap Chinese stocks to buy now.
7. ZTO Express (Cayman) Inc. (NYSE:ZTO)
Forward P/E Ratio: 12.22
Earnings Growth This Year: 12.59%
Number of Hedge Fund Holders: 23
ZTO Express (Cayman) Inc. (NYSE:ZTO) is a Chinese company, specializing in providing fast and efficient delivery services across China and beyond. It operates through Express Delivery Services and Logistic Services, which helps move packages quickly from one place to another, using a large network of sorting centers and transportation routes. It operates both within China and in international markets through partnerships.
In its fiscal third quarter of 2024, the company grew its revenue by 17.6% to RMB 10.68 billion and gross profits by 23.2% to reach RMB 3.34 billion. The growth was driven by increased parcel volumes, which grew by 15.9% year-over-year to reach 8,723 million parcels. During the quarter, ZTO Express (Cayman) Inc. (NYSE:ZTO) maintained over 31,000 pickup and delivery outlets and more than 6,000 direct network partners. Looking ahead, it aims to preserve its leadership in volume and market share while enhancing service quality and profitability. Management projects parcel volume growth between 11.6% and 12.3% for 2024, reflecting strategic adjustments to market dynamics. It is one of the best cheap Chinese stocks to buy now.
6. Vipshop Holdings Limited (NYSE:VIPS)
Forward P/E Ratio: 6.67
Earnings Growth This Year: 4.16%
Number of Hedge Fund Holders: 25
Vipshop Holdings Limited (NYSE:VIPS) is an online discount retailer based in China. The company uses a flash sale model through which it buys products from over 17,000 brands at discounted prices and sells them online for a limited time at even lower prices. The company deals in products ranging from apparel for men, women, and children, to fashion goods, cosmetics, and lifestyle products. Its products are sold mainly through its website vip.com and other platforms like lefeng.com.
During the fiscal fourth quarter of 2024, Vipshop Holdings Limited (NYSE:VIPS) delivered results above expectations despite a challenging year. The company saw positive growth in apparel categories, which accounted for 75% of total Gross Merchandise Volume, helping them surpass RMB200 billion in annual sales. The Apparel category alone experienced a 2% year-over-year growth, driven by strong execution and a focus on retail fundamentals. The company introduced unique off-price seasonal offerings, particularly in sportswear and outdoor products.
The company is improving its customer engagement, during the quarter, Super VIP membership witnessed double-digit growth, with active members increasing by 50% year-over-year. On February 25, Jiong Shao from Barclays maintained a Buy rating on the stock with a price target of $20. It is one of the cheap Chinese stocks to buy now.
5. Qifu Technology, Inc. (NASDAQ:QFIN)
Forward P/E Ratio: 7.01
Earnings Growth This Year: 50.99%
Number of Hedge Fund Holders: 30
Qifu Technology, Inc. (NASDAQ:QFIN), formerly known as 360 DigiTech Inc, is a Chinese company that specializes in credit technology services. It connects people or businesses who want to borrow money with banks and helps these institutions evaluate the creditworthiness of borrowers, match funds, and manage loans after they are issued. Moreover, the company also offers platform services to financial institutions including loan assistance, intelligent marketing, referral services, and risk management.
Earlier in December, Analyst Manyi Lu from DBS issued a Buy rating on the stock with a price target of HK$164.30. The analyst noted that the company achieved a 37% year-on-year growth in earnings during the first nine months of 2024, exceeding market expectations. This growth was attributed to an improved take rate, which is the percentage of loans originated that the company retains as income, and also due to lower funding costs, indicating a more efficient business model. The analyst anticipates mid-single-digit earnings growth for the fiscal years 2025 and 2026.
During the fiscal third quarter of 2024, Qifu Technology, Inc. (NASDAQ:QFIN) connected with 162 financial institutional partners and reached 254.3 million consumers with potential credit needs, marking an 11.6% increase year-over-year. Moreover, there were 55.2 million users with approved credit lines, up 12.2% from the previous year. It is one of the cheap Chinese stocks to buy now.
4. NetEase, Inc. (NASDAQ:NTES)
Forward P/E Ratio: 13.21
Earnings Growth This Year: 6.72%
Number of Hedge Fund Holders: 38
NetEase, Inc. (NASDAQ:NTES) is a Chinese technology company that operates through four key business segments including Gaming, Education, Music, and E-commerce. In the Gaming segment, the company develops and sells mobile and PC games, whereas, through its Education segment, the company operates the Youdao platform for online learning services, smart devices, and marketing tools. On the other hand, it operates NetEase Cloud Music which offers online music streaming services with membership subscriptions. Lastly, it also runs e-commerce platforms, advertising services, and other value-added services.
On March 3rd, Yang Liu CFA from Morgan Stanley maintained a Buy rating on the stock, with a price target of $117. The analyst noted that the strategic move to relaunch Condor Heroes 2.0 is aimed at revitalizing a previously underperforming game. The enhancements in character models, martial arts skills, and gameplay are expected to attract a large number of gamers, as indicated by the significant interest shown by players. Liu also noted that the company’s decision to refund previous grossing to players demonstrates a commitment to customer satisfaction and long-term brand loyalty, which is seen as a positive move.
During the fiscal fourth quarter of 2024, NetEase, Inc. (NASDAQ:NTES) reported a net revenue of RMB 26.7 billion, representing a slight decrease of 1.4% compared to the same quarter of 2023. On the bright side, the Gaming segment revenue increased 1.5% year-over-year to RMB 21.2 billion, indicating the continued strength of NetEase’s gaming business. It is one of the 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.”
2. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E Ratio: 10.11
Earnings Growth This Year: 76.13%
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a multinational company primarily operating through e-commerce business. The strategic edge of the company lies in the strong network it has established to help with logistics and sourcing. During the fiscal third quarter of 2024, the company grew its total revenue by 44% year-over-year, to reach $14.16 billion.
GreenWood Investors in its Q4 2024 investor letter noted PDD Holdings Inc. (NASDAQ:PDD) to be one of the detractors from the fund’s portfolio in 2024. This was due to the transitory foreign exchange translation losses and the company’s decision to reinvest its margins into growth and supplier ecosystem improvements. The fund praised PDD’s relentless corporate culture, led by founder Colin Huang, which has enabled the company to achieve a gross merchandise value (GMV) comparable to Amazon’s in a much shorter time frame. Moreover, the fund is attracted to the company’s international expansion through Temu, which is growing sales at a rate four times faster than Amazon. It is one of the cheap Chinese stocks to buy now.
GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2024 investor letter:
“Aside from transitory foreign exchange translation losses (as opposed to trading losses), the two other notable detractors from our portfolio were MEI Pharma and PDD Holdings Inc. (NASDAQ:PDD) in 2024.
PDD Holdings founder Colin Huang is who inspired us to “run 3x faster,” as the relentless corporate culture of PDD has built an e-commerce company with roughly the same GMV (gross merchandise value) of Amazon in one-third the time it took Amazon to build itself. Shares reacted negatively when the company decided to reinvest its record margins into even faster growth and creating a healthier supplier ecosystem. As it looks set to create a second Amazon with its international site Temu, we are highly attracted to the opportunity. Sales are growing 4x faster than Amazon’s, yet shares are priced at less than a quarter of the Amazon earnings multiple.
PDD is a perfect example of why we want to look outside of the “Big Ten” companies that are nearly a third of global market indices. We would not want to compete with the demanding corporate culture of PDD and Temu. Its operating model is relentless at identifying efficiency throughout the manufacturing and selling supply chain. Not only is it a more formidable competitor than Amazon, and growing much faster, but the valuation is 4x more attractive than Amazon’s…” (Click here to read the full text)
1. Alibaba Group Holding Limited (NYSE:BABA)
Forward P/E Ratio: 14.5
Earnings Growth This Year: 5.09%
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is the top cheap Chinese stock to buy now. It operates as an e-commerce giant and a technology infrastructure company. The company runs well-known platforms including Taobao, Tmall, and AliExpress that enable businesses to sell products in China and internationally. On the other hand, AliExpress.com is a wholesale e-commerce marketplace that connects businesses with suppliers.
During the fiscal third quarter of 2025, the company highlighted its strategic focus on user first AI-driven approach. The management noted that they have been focused on two main areas: e-commerce and AI plus cloud computing. After a year of transformation, these businesses have shown accelerating growth momentum. Alibaba Group Holding Limited (NYSE:BABA) has largely completed the divestment of its offline assets, resulting in strong business fundamentals and profit-generating capabilities across its businesses. Overall revenue of the company, excluding Alibaba consolidated subsidiaries, grew 11% year-over-year, with AI-related product revenue maintaining triple-digit growth for the sixth consecutive quarter.
On February 28, Arete upgraded the stock to Buy from Neutral with a $164 price target. Moreover, Artisan Select Equity Fund in its Q4 2024 investor letter noted that the company’s valuation does not depict its true potential. Here’s what the fund said about the company:
“Alibaba Group Holding Limited’s (NYSE:BABA) share price decline was primarily giving back the gains from the prior quarter. Recall that all Chinese stocks surged last quarter after the Chinese government unveiled an unanticipated stimulus that temporarily captivated investors. The reality of the undersized stimulus and the challenges facing the Chinese economy eventually prevailed, leading Chinese equities—including Alibaba—to come back down to earth. Despite our concerns about China’s economic outlook, which we outlined in detail in last quarter’s letter, shares of Alibaba still represent significant value. The company is a leading player in several attractive market segments. We believe management is doing the right things, such as selling off businesses and returning capital to shareholders. It has made several changes to management and strategy that we expect will return the business to healthy growth over the coming year. In our opinion, the valuation is depressed and does not reflect a fair value for a company with these attributes.”
While we acknowledge the potential of BABA 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 BABA 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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