China Stocks Are Hot Again: These Five Are Near Buy Points

China stocks are back in the limelight, with investors piling into the market at the fastest pace in months. The rally, driven by bullishness on the DeepSeek-driven technology rally and hopes for more economic stimulus, has added more than $1.3 trillion in total value to the market in just the past month. As the MSCI China Index is on track to outperform its Indian counterpart for a third-straight month, investors are looking for the best Chinese stocks to buy now. Here are five Chinese stocks near buy points that could be worth considering:

1. Tencent Holdings Ltd (TCEHY) - Tencent is a massive messaging and gaming giant, with its WeChat super app being the envy of the world. The company's earnings rebounded in 2023, with EPS growth accelerating for six straight quarters. Tencent stock has rebounded strongly since early March, building the right side of a 17-month, 38%-deep cup-with-handle base. The buy point is 50.89, and clearing the June 20 intraday high of 49.67 would offer an early entry.

2. PDD Holdings (PDD) - PDD Holdings is an e-commerce titan that has benefited from the growth of online shopping in China. The company's earnings surged 941% and 108% in the last two quarters, along with revenue gains of 42% and 27%. PDD stock broke out of a base-on-base formation in mid-May, hitting a 52-week high of 22.74 on May 22. Shares have retreated back below the buy point and slightly below the 50-day line, but a move above the prior 21.32 buy point would be actionable.

3. BYD Co. Ltd (BYDDF) - BYD is a world-leading electric vehicle (EV) manufacturer, producing fully battery electric vehicles (BEVs) and plug-in hybrids (PHEVs). The company has been fighting for the BEV-only crown with Tesla and will likely regain that title this quarter. BYD stock slumped from early August to the end of January, but has since bounced back. Shares are slightly above a short consolidation, with a 29.72 buy point.

4. Kanzhun Ltd (BZ) - Kanzhun provides online recruitment services via its mobile app, BOSS Zhipin, connecting companies and job seekers. The company is growing rapidly, with earnings surging 941% and 108% in the last two quarters, along with revenue gains of 42% and 27%. BZ stock broke out of a base-on-base formation in mid-May, hitting a 52-week high of 22.74 on May 22. Shares have retreated back below the buy point and slightly below the 50-day line, but a move above the prior 21.32 buy point would be actionable.

5. Trip.com Group Ltd (TCOM) - Trip.com is a China-based online travel site operator that has benefited from a travel boom after China's long Covid restrictions were lifted in late 2022. Q1 2024 earnings jumped 86% vs. a year earlier, with revenue up 23%. TCOM stock broke out past a cup base in late February on Q4 2023 earnings, then gapped out of a flat base, base-on-base pattern in early April. Shares hit a six-year high of 58 on May 20, but pulled back and have broken decisively below the 50-day line, back near the top of the flat base. If Trip.com can recover the 50-day line, it would likely offer a new base.

These five Chinese stocks near buy points have strong fundamentals, positive earnings growth prospects, and are well-positioned to benefit from the ongoing rally in the Chinese stock market. As the market continues to gain momentum, investors should keep an eye on these stocks and consider adding them to their portfolios. However, it's essential to conduct thorough research and consider other factors, such as market conditions and sector-specific trends, before making any investment decisions.