China Stocks Are Hot: These Five Are Near Buy Points

Listen up, folks! China stocks are back in the limelight, and they're on fire! Investors are piling in at the fastest pace in months, driven by the DeepSeek-driven technology rally and hopes for more economic stimulus. The MSCI China Index is on track to outperform its Indian counterpart for a third-straight month, and the market has added more than $1.3 trillion in total value in just the past month. So, if you're looking for the best Chinese stocks to buy now, you're in the right place. Let's dive into the five Chinese stocks near buy points that could be worth considering!

1. Tencent Holdings Ltd (TCEHY) - This 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. BUY NOW!

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. This stock is ON FIRE!

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. This is a no-brainer!

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. This stock is a winner!

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. This stock is a must-have!



Now, let's talk about the potential risks and challenges. China stocks, after a brief revival, have faltered as stimulus measures have disappointed and on the threat of sweeping new tariffs under Donald Trump. Still, several stocks are showing strength. Tesla (TSLA) rivals BYD (BYDDF) and XPEV (XPEV) are near buy points, along with travel plays Atour Lifestyle Holdings (ATAT) and Trip.com (TCOM), as well as messaging and gaming giant Tencent (TCEHY). Investors should pay attention to many other Chinese stocks, including e-commerce titan Alibaba (BABA), JD.com (JD), search giant Baidu (BIDU), online recruitment site Kanzhun (BZ), data center play GDS Holdings (GDS), online entertainment concern Bilibili (BILI) and gaming giant NetEase (NTES). Don't forget other EV makers, such as Li Auto (LI) and Nio (NIO).

Investors wary of buying an individual Chinese stock could choose ETFs such as KraneShares CSI China Internet ETF (KWEB), iShares China Large-Cap ETF (FXI) and Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR).

So, what are you waiting for? Get in on the action and buy these stocks now! The market is hot, and these five stocks are near buy points. Don't miss out on this opportunity to make some serious money!