5 Most Promising Chinese Stocks According to Analysts

In this article, we will look at the 5 most promising Chinese stocks to buy now according to analysts. If you want to explore similar stocks, you can go to 10 Most Promising Chinese Stocks According to Analysts.

5. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 105

Average Upside Potential as of February 13: 32.20%

At the end of Q3 2022, 105 hedge funds were eager on Alibaba Group Holding Limited (NYSE:BABA) and disclosed positions worth $4.14 billion in the company.

Wall Street analysts see promising upside to Alibaba Group Holding Limited (NYSE:BABA). This January, Barclays analyst Jiong Shao raised his price target on Alibaba Group Holding Limited (NYSE:BABA) to $141 from $114 and maintained an Overweight rating on the shares.

Over the past 3 months, Alibaba Group Holding Limited (NYSE:BABA) has received 16 Buy ratings from Wall Street analysts and has an average price target of $138.53. The stock’s average price target represents an upside potential of 32.20% from current levels. Alibaba Group Holding Limited (NYSE:BABA) is one of analysts’ most promising Chinese stock picks.

As of December 31, Coatue Management is the largest shareholder in Alibaba Group Holding Limited (NYSE:BABA) and has a position worth $440.5 million in the company.

Here is what Polen Capital had to say about Alibaba Group Holding Limited (NYSE:BABA) in its third-quarter 2022 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”

4. Full Truck Alliance Co. Ltd. (NYSE:YMM)

Number of Hedge Fund Holders: 17

Average Upside Potential as of February 13: 36.43%

Full Truck Alliance Co. Ltd. (NYSE:YMM) is a leading Chinese trucking company. The company offers a variety of services for the trucking industry including freight listing, matching, and brokerage services among others. Full Truck Alliance Co. Ltd. (NYSE:YMM) is one of the most promising Chinese stocks to buy now according to analysts.

This February, Barclays analyst Jiong Shao took coverage of Full Truck Alliance Co. Ltd. (NYSE:YMM) with an Equal Weight rating and a $8 price target. Over the past 3 months, the stock has received 2 Buy ratings and 1 Hold rating from Wall Street analysts and has an average price target of $10, which represents an upside of 36.43% from its closing price on February 13.

At the end of the third quarter of 2022, 17 hedge funds held stakes in Full Truck Alliance Co. Ltd. (NYSE:YMM). The total value of these stakes was valued at $454.5 million. As of December 31, Farallon Capital is the largest shareholder in the company and has disclosed a position worth $347.5 million.

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

Number of Hedge Fund Holders: 67

Average Upside Potential as of February 13: 62.81%

JD.com, Inc. (NASDAQ:JD) has a consensus Strong Buy rating among Wall Street analysts and is ranked among the most promising Chinese stocks to buy now. The stock has received 10 Buy ratings and 1 Hold rating from analysts over the past 3 months. The stock’s average price target sits at $85.36 and represents an upside of 62.81% from its closing price on February 13.

On February 7, Mizuho analyst James Lee raised his price target on JD.com, Inc. (NASDAQ:JD) to $85 from $82 and keeps a Buy rating on the shares. JD.com, Inc. (NASDAQ:JD) is one of Lee’s top China Internet picks.

At the close of Q3 2022, JD.com, Inc. (NASDAQ:JD) was spotted on 67 investors’ portfolios that held collective stakes worth $3.71 billion in the company. As of December 31, Tiger Global Management LLC is the leading investor in the company and has a stake worth $1.22 billion.

2. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 26

Average Upside Potential as of February 13: 65.96%

NIO Inc. (NYSE:NIO) is a premier Chinese EV manufacturer and is one of Wall Street analysts’ most promising Chinese stocks to buy now. The company offers five, six, and seven-seater electric SUVs and smart electric sedans. On February 1, the company announced its vehicle delivery results for January 2023. The company successfully delivered 8,506 electric vehicles in January, of which 2,190 were electric SUVs and 6,316 were electric sedans.

As of December 27, Morgan Stanley analyst Tim Hsiao has a $16.10 price target and an Overweight rating on NIO Inc. (NYSE:NIO). Over the past 3 months, NIO Inc. (NYSE:NIO) has received 8 Buy ratings and 3 Hold ratings from Wall Street analysts. The stock has an average price target of $17.11 which represents an upside potential of 65.96% from current levels.

At the end of the third quarter of 2022, 26 hedge funds were long NIO Inc. (NYSE:NIO) and disclosed positions worth $518.9 million in the company. As of December 31, Electron Capital Partners is the top investor in the company and has a stake worth $61.4 million.

1. Zai Lab Limited (NASDAQ:ZLAB)

Number of Hedge Fund Holders: 24

Average Upside Potential as of February 13: 108.12%

Zai Lab Limited (NASDAQ:ZLAB) is a leading Chinese commercial-stage biotechnology company involved in the development and commercialization of treatments for cancer, autoimmune disorders, and infectious diseases. As of February 13, the stock has returned over 20% to investors year to date.

Over the past 3 months, Zai Lab Limited (NASDAQ:ZLAB) has received 6 Buy ratings from Wall Street analysts and has a consensus Strong Buy rating. The stock has a maximum price target of $138 and an average price target of $84.06. The stock’s average price target represents an upside potential of 108.12% from its closing price on February 13. Zai Lab Limited (NASDAQ:ZLAB) is one of the most promising Chinese stocks to buy now according to analysts.

At the close of Q3 2022, Zai Lab Limited (NASDAQ:ZLAB) was a part of 24 investors’ portfolios that held collective stakes worth $426.3 million in the company. As of December 31, Segantii Capital is the top shareholder in the company and has disclosed a position worth $74.5 million.

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