In this article, we will look at the 10 Chinese Penny Stocks to Buy According to Analysts.
The announcement of the Chinese stimulus has somewhat created interest among investors and market pundits. China’s local market reacted positively after the government announced that it would apply a ‘moderately loose’ strategy for monetary policy in 2025. This will be China’s first major shift in economic policy since 2011. The Chinese government could take a more proactive approach to fiscal policy to stabilize property and stock markets.
READ ALSO: 10 Best Canadian Stocks to Buy Under $10 and 10 Most Profitable European Stocks To Invest In.
China’s President Vows to Meet Growth Target
China’s president, Xi Jinping, has assured that the country will remain the world’s ‘growth engine’ and meet its GDP growth target of 5% in 2024. The Chinese government has taken bold steps to support its economy. Moreover, the stimulus has come at a time when the economy is struggling badly and there are potential tariff threats from the new U.S. administration. Despite that, China has been facing lower imports and exports, which greatly threatens the economy against Trump’s tariffs.
The outbound shipments saw a 6.7% growth in November, missing estimates by 8.5% and down from a 12.7% growth in October 2024. On top of that, the imports declined 3.9% in November, the worst performance for imports in nine months, as reported by Reuters.
China’s stimulus of $1.5 trillion, or nearly 10 billion yuan, to support its economy has given some hope. Further loosening the policy would support small businesses. However, for investors to be attracted to the Chinese stock market, something positive needs to happen, especially how the economy reacts to the policy during the first half of 2025.
“The actual delivery has disappointed high hopes several times already over the past two years. We are back to the tricky stage of waiting for actual numbers to see whether it lives up to expectations,” said Xin-Yao Ng, investment director on the Asian equities team at abrdn.
The Hang Seng Index has plunged over 3% over the last five days, as of December 17, while the CSI 300 index has dropped by nearly 1.50% in the last five days but it is up by almost 16% year to date. We can see the market’s mixed reaction to the recent events.
With that, let’s take a look at the 10 Chinese penny stocks to buy according to analysts. You can also visit and see 12 cheap Chinese stocks to buy according to hedge funds.
Our Methodology
To compile our list of the 10 Chinese penny stocks to buy according to analysts, we used a Finviz screener to list down all Chinese penny stocks under $5. We then picked the 10 stocks with the highest upside (over 25%) according to analysts, as of December 17. The list is ranked in ascending order of analysts’ estimated upside.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Chinese Penny Stocks to Buy According to Analysts
10. HUYA Inc. (NYSE:HUYA)
Share Price (As of December 17): $3.06
Analysts Upside: 30.34%
HUYA Inc. (NYSE:HUYA) is a Chinese holding company that provides live-streaming and game-related services. The company collaborates with e-sports event organizers, game developers, and publishers to develop e-sports live streaming. HUYA is also engaged in the development and operations of certain mobile games in cooperation with third-party distribution platforms and game-related apps.
HUYA Inc. (NYSE:HUYA) is improving its position in the domestic market with the help of collaborations with prominent platforms in the Chinese digital entertainment ecosystem. The company has partnerships with DouYu, Bilibili, Kuaishou, Tencent Video, and QQ, which are expected to attract new users and increase user retention. The company is promoting its popular games including Arena Breakout, World of Warcraft, and Naruto Mobile through these collaborations.
HUYA Inc.’s core focus remains on its game live-streaming business. The company is looking forward to advancing its game-related services which include game distribution, in-game item sales, and game advertising. Focusing on the core business, the company’s strong growth across its platform has helped it gain record revenues across game-related services and advertising in Q3, which increased by 209.3% year-over-year and 32.9% quarter-over-quarter. Thanks to the sustained monthly active user engagement of around 84 million, HUYA continues to reduce its expenses. During Q3, operating expenses decreased by almost 21% from a year ago.
9. ATRenew Inc. (NYSE:RERE)
Share Price (As of December 17): $3.02
Analysts Upside: 32.45%
ATRenew Inc. (NYSE:RERE), formerly AiHuiShou International, operates a technology-driven pre-owned consumer electronics transactions and services platform in China. Since its inception in 2011, ATRenew has aimed to recycle idle goods, trade in electronic devices and other consumer goods, and increase their lifecycle.
ATRenew Inc. is one of the leading names committed to integrating sustainable practices into its operations. The company has a major role in driving sustainable practices within China’s private sector and circular economy. On December 3, the United Nations Global Compact (UNGC) recognized ATRenew Inc. (NYSE:RERE) among the “Forward Faster: 20 Examples of Private Sector’s Sustainable Development in China” campaign. The UNGC’s recognition is a testament to the company’s commitment to its ESG policies and its mission to recycle idle goods.
ATRenew Inc. (NYSE:RERE) is growing its business swiftly and remains on track to further boost its growth. The company posted a revenue growth of more than 24% year-over-year in Q3. ATRenew’s core recycling business revenue in China soared by over 30% from a year ago. The company’s multicategory recycling business experienced a whopping 270% year-over-year increase in transaction value. In addition to that, the company’s recycling and trading business through JD.com soared by 40% in Q3. To further enhance brand awareness and meet the rising demand, ATRenew Inc. (NYSE:RERE) plans to open new stores in the next 2 to 3 years.
8. NIO Inc. (NYSE:NIO)
Share Price (As of December 17): $4.42
Analysts Upside: 35%
NIO Inc. (NYSE:NIO) is a prominent electric vehicle company that specializes in premium smart EVs. The company is recognized for its battery swapping technology and Battery as a Service (BaaS) model, which provides customers with adaptable battery subscription options. NIO recently introduced its mass-market brand ONVO, which began selling vehicles equipped with features like battery swapping and support for various battery ranges in September 2024. In addition to that, some of the prominent products of NIO include ES8, ES6, EC6, and ET7. NIO mainly conducts its business in the domestic market.
NIO Inc. (NYSE:NIO) continues to increase its deliveries and November marked the seventh consecutive month of delivering over 20,000 EVs. Moreover, a “more proactive” fiscal policy in 2025 and the Chinese stimulus will assist NIO, potentially increasing its EV unit sales. NIO holds around 2.1% of the EV domestic market share in China. The company has diversified its business and is investing in new technologies in the EV industry.
Moreover, NIO has announced that its flagship executive sedan has been approved by China’s Ministry of Industry and Information Technology (MIIT). NIO’s upcoming ET9 luxury sedan, set to launch in Q1 2025, will be the first mass-produced car equipped with steer-by-wire technology. This will also be the first mass-produced vehicle with steer-by-wire technology in China. This technology enhances handling and driver experience and is aimed at executive-level buyers with a starting price above $110,000.
7. RLX Technology Inc. (NYSE:RLX)
Share Price (As of December 17): $1.96
Analysts Upside: 37.76%
RLX Technology Inc. (NYSE:RLX) is an e-vapor company that is engaged in product development of e-cigarettes. The company is involved in the e-vapor industry, and engages in scientific research, product development, supply chain management, and offline distribution. The company’s products are mainly sold in retail stores through its distributors and customer representatives.
Considering the increasing demand for e-vapor products in the international market, RLX Technology Inc. is now implementing the same model in the global market after its success in China. The company is optimizing the global market trends in the e-vapor industry and that has helped in revenue growth. During Q3 2024, the company posted a 52% year-over-year growth in net revenues driven by international expansion.
RLX Technology Inc. (NYSE:RLX) has launched a new product line, which has received positive feedback from retailers and users. RLX Prime and RLX Bin are two of the newly launched e-vapors. The company’s new products are compliant and disposable since it is implementing national standards. The company is working on enhanced product functionality and producing cost-effective daily e-vapor products, considering the growing demand among different consumers.
Despite the tough macroeconomic circumstances, RLX Technology Inc. (NYSE:RLX) has performed well and is seeking new growth opportunities. The company plans to enter countries in the EMEA region and Central America in 2025, aiming to capture a large market segment.
6. Waterdrop Inc. (NYSE:WDH)
Share Price (As of December 17): $1.15
Analysts Upside: 38.61%
Waterdrop Inc. (NYSE:WDH) is a leading technology company mainly engaged in running an independent third-party insurance platform focused on insurance and healthcare services. Waterdrop’s primary business operations include the insurance marketplace, medical crowdfunding, and mutual aid.
Waterdrop Inc. (NYSE:WDH) continues to improve its insurance and crowdfunding business. During the third quarter of 2024, the company’s insurance business first-year premiums (FYP) increased by nearly 15% quarter-over-quarter and maintained an operating profit margin above 20%. Even though the company’s insurance-related income declined by 2% year-over-year, WDH’s net profit attributable to ordinary shareholders soared by nearly 153% from a year ago.
In Q3 2024, the company’s growth was mainly driven by user acquisition and innovative tailor-made products. Furthermore, the company’s AI consultant has recorded notable progress, with the ability to generate over 1 million yuan in monthly premiums by serving user inquiries. The company’s crowdfunding coverage is another key segment and during Q3, over 466 million people used Waterdrop Medical Crowdfunding to donate an aggregate of RMB 66.3 billion to 3.32 million patients.
Waterdrop Inc.’s (NYSE:WDH) growth has helped in improving its cash position. By the end of Q3 2024, the company had RMB 3.44 billion, which includes cash and cash equivalents, short-term investments, and long-term debt investments.
5. Dingdong (Cayman) Limited (NYSE:DDL)
Share Price (As of December 17): $3.96
Analysts Upside: 38.78%
Dingdong (Cayman) Limited (NYSE:DDL) is a Chinese e-commerce company that provides groceries and other daily necessities. The products offered on Dingdong’s e-commerce platform mainly include fresh eatable items such as farm items, meat, and seafood. The company has over 950 frontline fulfillment stations across China, supported by almost 40 regional processing centers to assist its supply chain.
Dingdong Limited (NYSE:DDL) has attracted strong demand from lower-tier cities within Jiangsu and Zhejiang. The growth in these regions is driven by accelerated penetration via new fulfillment stations and improved product offerings. The company has expanded its products with the addition of fruits, dairy, wine, snacks, and baked goods, leading to high daily transaction volumes.
In addition to that, the company opened 80 new frontline fulfillment stations in Q3 2024, which added to strong financial performance during the quarter. The enhanced inventory management and delivery speed have further improved the number for DDL. During Q3, the revenue soared by 27% year-over-year to RMB 6.54 billion while the gross merchandise value (GMV) increased by 28% to RMB 7.27 billion. The company continues to enhance its growth after it achieved non-GAAP profitability for the eighth consecutive quarter.
The continuous growth and profitability have helped Dingdong improve its cash position, achieving a positive net inflow for five consecutive quarters. With further development and inventory management, Dingdong (Cayman) Limited (NYSE:DDL) remains a promising Chinese penny stock to invest in.
4. VNET Group, Inc. (NASDAQ:VNET)
Share Price (As of December 17): $3.86
Analysts Upside: 40.13%
VNET Group, Inc. (NASDAQ:VNET) is a hyperscale internet data center services provider. The company offers a wide range of internet data services which include hosting customer servers and networking equipment, managed network services through data transmission network and smart routing technology, and hosting-related value-added services.
VNET Group, Inc. (NASDAQ:VNET) has been spending its capital with CapEx expected to reach the high end of guidance at RMB 5.5 billion, reflecting significant capital expenditure requirements. However, there is still a lot of room for improvement in the company’s wholesale business despite strong growth. The utilization rate for VNET’s wholesale business stands at 78%, indicating room for further optimization. In addition to that, the company can also improve its retail IDC business, which has shown stable capacity and utilization rates.
VNET Group, Inc. has partnered with Dajia Investment Holding Company Ltd. to form a pre-REITs fund to invest in hyperscale data centers in China. Through the fund, VNET will assist in the development of China’s data center sector, which indicates the growing demand for infrastructure projects in China.
During the third quarter of 2024, VNET Group, Inc. (NASDAQ:VNET) posted a net revenue of RMB 2.12 billion, up by 12.4% year-over-year, driven by its wholesale IDC business. The wholesale business segment was the major driver with the segment’s revenue soaring by 86.4% from a year ago. The company obtained six new orders during Q3, reflecting strong customer demand and market position. The company has maintained a solid cash position, which is key to supporting its current operations and future development plans.
3. Tuya Inc. (NYSE:TUYA)
Share Price (As of December 17): $1.81
Analysts Upside: 60.77%
Tuya Inc. (NYSE:TUYA) is a cloud services provider primarily involved in the provision of Internet of Things (IoT) cloud development platforms and services. The company’s cloud development platforms allow clients to access a common infrastructure and all the ready-to-use software, development tools, and services needed to develop and manage smart devices. Tuya’s products are mainly used in smart home, smart business, healthcare, agriculture, sports, education, and entertainment.
Tuya Inc. (NYSE:TUYA) is one of the leading tech companies in China committed to advancing sustainability on a global scale. The company has several collaborations including Xanlite, Nahui New Energy Technology by Haier Group, and ESR. In cooperation with these partners, Tuya provides smart home energy-saving solutions and promotes green living. On November 29, the company was recognized by UNGC for its innovative Home Energy Management System (HEMS) at the ’20 CASES FOR 20 YEARS’ of Private Sector Sustainable Development in China. Tuya’s HEMS is expected to support 1.8 million households in Singapore and achieve an average energy savings of 25%.
IoT and AI are two of the fastest-growing technologies and will become fundamental over the next two decades. Tuya Inc. (NYSE:TUYA) being an IoT specialized company is also leveraging AI capabilities with hardware, creating AI devices such as smart bird feeders. Tuya experienced a 34% revenue growth in the third quarter of 2024 from a year ago while IoT Platform-as-a-Service (PaaS) revenue and Smart Solutions revenue soared over 26% and 100% year-over-year, respectively.
2. Gaotu Techedu Inc. (NYSE:GOTU)
Share Price (As of December 17): $2.40
Analysts Upside: 88.70%
Gaotu Techedu Inc. (NYSE:GOTU), previously known as GSX Techedu Inc., is a holding firm primarily involved in the provision of technology-driven education services in China. The company manages its operations through subsidiaries and offers online K-12 after-school tutoring services. Gaotu also offers foreign language, professional and interest courses.
Gaotu Techedu Inc. (NYSE:GOTU) is scaling its business rapidly and the product matrix is also improving gradually. The company has invested in upgrading its educational systems to enhance organizational capabilities and improve management practices. The company has increased its market share steadily through the improvement in customer acquisition channels. Since 2023, the company has focused on expanding and diversifying its customer acquisition channels, which has produced solid results in driving acquisition systems.
Gaotu Techedu Inc.’s (NYSE:GOTU) strategic moves revolving around its core business have helped in steady progress. During Q3 2024, the company increased its revenue by 53.1% year-over-year to almost RMB 1.2 billion while the gross balance soared by 67.2% over the year to nearly RMB 1.1 billion. A major development during the third quarter is the more balanced product offering. The company’s revenue stream is more diversified following the aggressive offline expansion. Gaotu’s non-academic tutoring and overseas exam preparation add more to the firm’s revenue, as it takes advantage of its brand and customer base to penetrate the offline market.
Gaotu Techedu Inc. (NYSE:GOTU) has a solid balance sheet, despite losing cash due to investment ramp-ups and share buybacks. The company announced share buybacks of over 120 million, however, GOTU’s liquidity position remains solid. By the end of Q3, the company had more than RMB 3.31 billion in cash and cash equivalents.
1. Adlai Nortye Ltd. (NASDAQ:ANL)
Share Price (As of December 17): $2.36
Analysts Upside: 281%
Established in 2017, Adlai Nortye Ltd. (NASDAQ:ANL) is a global clinical-stage biopharmaceutical firm that is developing differentiated, innovative immuno-oncology medicines. Adlai Nortye made its IPO on NASDAQ in September 2024. The company is involved in R&D and the development of cancer therapies. Adlai Nortye’s pipeline includes three drug candidates in the clinical stage: buparlisib (AN2025), palupiprant (AN0025), and AN4005, alongside three candidates in the preclinical stage.
AN2025 is the lead product of Adlai Nortye Ltd. (NASDAQ:ANL) which is designed to treat solid tumors. The potential treatment candidate is under Phase 3 clinical trials for patients suffering from metastatic squamous neck cancer. AN2025 could potentially become the first drug to cure metastatic squamous neck cancer patients. Furthermore, the company’s other products to treat metastatic cancer including AN4005, a first-in-class oral PD-L1 inhibitor, and AN8025, a multifunctional fusion protein that serves as a T cell and APC modulator, are also progressing in their initial trials.
Adlai Nortye Ltd. (NASDAQ:ANL) is creating an experienced team with the additions of Archie Tse, M.D., Ph.D., as the Head of Research and Development, an expert in oncology drug development, and Roger Sawhney, M.D., the newest member of Adlai’s board of directors. According to the National Cancer Institute of Health (NIH), in the US alone, the number of people suffering from metastatic breast, prostate, lung, colorectal, or bladder cancer, or metastatic melanoma is projected to rise from 623,405 in 2018 to 693,452 by 2025. This shows a potential opportunity for Adlai to enter the market and make a mark.
Adlai Nortye Ltd. (NASDAQ:ANL) is focused on making a difference in curing metastatic cancer patients. AN2025 remains a key product for the company and the firm expects it to be on track to report the Phase 3 OS data in the first quarter of 2025, which would be potentially a game changer for the firm. Being a new biopharmaceutical firm with huge potential, ANL can gain massively in the long term.
While we acknowledge the potential of Adlai Nortye Ltd. (NASDAQ:ANL) 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 ANL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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