China is the world’s second-largest economy and is home to some of the world’s fastest-growing companies across sectors like technology, e-commerce, and healthcare. Investing in Chinese stocks can help diversify your portfolio and reduce overall risk by gaining exposure to different markets. However, investment in Chinese stocks comes with certain challenges related to regulatory, political, and economic factors.
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To help identify the best Chinese stocks for your portfolio, we have leveraged the TipRanks Stock Screener tool. These stocks have received a Strong Buy rating from analysts. Further, the average analysts’ price targets reflect a solid upside potential of more than 20%.
Here are five such stocks for investors to consider.
- Alibaba (NYSE:BABA) – BABA is an e-commerce and technology company in China. Alibaba’s average price target implies an upside potential of 44.34%. Following the release of Q4 earnings on February 7, 15 analysts assigned a Buy rating to the stock.
- NetEase (NASDAQ:NTES) – NetEase is an internet technology company, known for its online gaming and e-commerce platforms. NTES stock’s price forecast of $134.05 implies 24.06% upside potential.
- Baidu (NASDAQ:BIDU) – Baidu specializes in Internet-related services and artificial intelligence. The stock’s average price target implies an upside potential of 54.1%. Last week, two analysts rated the stock a Buy.
- Trip.com (NASDAQ:TCOM) – Trip.com is an online travel agency. TCOM stock has an average price target of $50.39, which implies a 25.98% upside potential from current levels.
- Li Auto (NASDAQ:LI) – Li Auto is a Chinese electric vehicle manufacturer that specializes in the development and production of smart electric SUVs. LI stock has an analyst consensus upside of 71.64%. Last week, one analyst rated the stock a Buy.
