5 Most Promising Chinese Stocks According to Analysts

1. Zai Lab Limited (NASDAQ:ZLAB)

Number of Hedge Fund Holders: 18

Average Analyst Price Target: ​​$62.70

Average Upside Potential: 178.67%

Zai Lab Limited (NASDAQ:ZLAB), one of the most promising Chinese stocks, is involved in creating and bringing to market treatments for cancer, autoimmune conditions, infectious diseases, and neuroscience-related ailments, mainly in Mainland China and Hong Kong. Their product lineup includes Zejula, a once-a-day small-molecule inhibitor targeting poly polymerase 1/2; Optune, a device designed for delivering tumor treating fields; NUZYRA, used for treating acute bacterial skin and skin structure infections, as well as community-acquired bacterial pneumonia; and Qinlock, used specifically for gastrointestinal stromal tumors.

On November 7, Zai Lab Limited (NASDAQ:ZLAB) reported a Q3 GAAP EPS of -$0.71 and a revenue of $69.23 million, outperforming Wall Street estimates by $0.27 and $2.87 million, respectively. 

According to Insider Monkey’s third quarter database, 18 hedge funds were bullish on Zai Lab Limited (NASDAQ:ZLAB), compared to the last quarter when 23 funds had invested in the stock. Andreas Halvorsen’s Viking Global is the top shareholder of the company, with 2.5 million shares valued at $60.56 million.

Here is what ClearBridge Investments International Growth ACWI ex-U.S. Strategy has to say about Zai Lab Limited (NASDAQ:ZLAB) in its Q4 2021 investor letter:

“Economies in Asia, meanwhile, are taking the opposite approach on stimulus, with China lowering its reserve requirement ratio for banks to support flagging growth in the world’s second-largest economy. Japan’s new government passed a large stimulus bill after its economy contracted in the third quarter. Despite these actions, sentiment remains decidedly negative in these regions. Our underweight to Japan proved beneficial during the quarter while our single holding in China – biotechnology company Zai Lab – sold off sharply mostly due to generally weak sentiment around Chinese health care stocks.”

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