What are the best Chinese stocks to buy and watch?
08/18/2023 •
Buy large Chinese companies with low P/E ratios and high dividends such as ICBC, China Construction Bank, and others. — The majority of positive sentiment revolves around choosing Chinese blue-chip companies that have consistent dividends and low P/E ratios. These stocks are perceived as being undervalued and provide potential opportunities for investors willing to bet against current negative market sentiment.
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| 79% | 95 | |
| 9% | 11 | 4Chan |
| 8% | 9 | |
| 3% | 4 | Mastodon |
| 1% | 1 | Hacker News |
| 63% | Negative |
| 21% | Neutral |
| 16% | Positive |
| 32% | 😃 Joy |
| 25% | 😡 Anger |
| 22% | 😱 Fear |
| 20% | 😢 Sadness |
| 0% | 🥰 Love |
| 0% | 😯 Surprise |
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Story
- Contradictory opinions exist on the performance of Chinese stocks. Some believe they generally underperform, especially when compared to American stocks like Alibaba, Tencent, Pinduoduo, Nio, and Xpeng. Others suggest that the current fear surrounding Chinese stocks offers a buying opportunity.
- There's a viewpoint that suggests investors should consider other stock options, such as Lyft, Exela Technologies, Arrival, and Macy's, and only invest in Chinese stocks, such as Nio, Xpeng, and Alibaba, if their prices drop considerably.
- Certain Chinese tech stocks like BABA, JD, and Baidu have a P/E ratio of less than 20, which may make them attractive options for investment.
- Investors recommend Chinese companies with low P/E ratios and high dividends, such as ICBC, China Construction Bank, Yuexiu Transport, Sinopharm, China Mobile, China Telecom, CNOOC, Ping An Insurance, China Petroleum & Chemical, WH Group, and VTech. These companies are considered to be large, distribute billions in dividends annually, and are listed in their home countries.
- There is skepticism about foreign ownership of Chinese stocks. The belief is that these stocks aren't truly owned by foreigners and can be voided arbitrarily by the Communist Party.
- Comparatively, Indian stocks and ETFs might be performing better than the Chinese market. There are doubts about Chinese stocks rising as fast as those in the US or Western Europe.
- While some investors see a positive sentiment in investing in Chinese stocks, others exhibit skepticism. Regulatory risks, especially after Evergrande's financial issues, and the underperformance of specific stocks like JD.com and Alibaba, are causes for concern.
- Suggested strategies for investing in Chinese stocks include avoiding them due to perceived risks or considering specific stocks that show promise. The contrarian approach emphasizes buying undervalued Chinese stocks with high dividends.
- Blue-chip Chinese companies with low P/E ratios and high dividends have mixed opinions. While some see them as investment opportunities, others are more critical, particularly towards global blue-chip companies.
- The Chinese stock market's development is perceived differently. Some believe that a downturn in the Chinese economy could affect global markets. The relationship between total market capitalization of global stocks and global GDP is seen as a key measure for comparison.
- The Chinese Securities Regulatory Commission (CSRC) Chairman suggests new policies for high-level development of the Chinese capital market, indicating an aim to further its development and regulation.