5 Top Chinese Stocks To Watch Right Now
As we begin another week of trading in the stock market, Chinese stock continues to draw traction among investors. For now, investors appear to have a sense of optimism due to the easing of regulatory crackdowns and lockdown restrictions within the country. After two painful months of lockdown to halt the outbreak of the Omicron variant, Beijing and Shanghai are finally returning to normalcy. Not to mention, the Chinese government unveiled a stimulus package late last month, which includes measures to encourage consumption. Hence, it should not be surprising if investors are making their list of top Chinese stocks to buy this week.
Furthermore, Chinese regulators are concluding probes into ride-hailing giant Didi Global (NYSE: DIDI). It appears that the company’s app will be back on domestic app stores as early as this week, according to Wall Street Journal. In light of this, DIDI stock is rising by over 50% on today’s opening bell. Aside from that, reports are also suggesting that regulators are planning to allow apps of logistics platform Full Truck Alliance (NYSE: YMM) back on the app store this week. Considering all these, here are five Chinese stocks to watch in the stock market today.
Chinese Stocks To Watch This Week
- Nio Inc (NYSE: NIO)
- Xpeng Inc (NYSE: XPEV)
- Futu Holdings Ltd (NASDAQ: FUTU)
- BYD (OTCMKTS: BYDDF)
- NetEase Inc (NASDAQ: NTES)
First up, we have one of the leading electric vehicle (EV) companies in China, Nio. The company also develops battery swapping technologies and autonomous driving technologies. Moreover, Nio recently entered a partnership with Advanced Micro Devices (NASDAQ: AMD). As part of the collaboration, Nio will use AMD’s EPYC family of processors to speed up its AI deep learning training and shorten product development cycles. For now, the chips will only be used for vehicle development and not the production of vehicles.
Last week, the company announced its vehicle deliveries for May 2022. Nio delivered 7,024 vehicles, up 5% compared to the same period last year. While these figures may not be wildly impressive, it is suggestive that Nio is gradually recovering from the impact of coronavirus outbreaks in China. Investors should note that vehicle deliveries were largely constrained by the corresponding preventive measures over the past few months. Moving forward, Nio plans to ramp up the production capacity by working closely with supply chain partners. All in all, do you think NIO stock can build on its current momentum?
Similar to Nio, Xpeng is another top EV company in China. As of now, its primary products are vehicles such as the G3 SUV and the P7 sports sedan. Xpeng also aims to develop a full-stack autonomous driving technology, in-car intelligent operating system, and core vehicle systems. All this is possible through its proprietary software, core hardware, and data technologies. XPEV stock has climbed more than 10% over the past month.
As with most Chinese EV companies, Xpeng also recently announced its vehicle delivery updates for May 2022. Impressively, Xpeng delivered 10,125 Smart EVs, representing an increase of 78% year-over-year. As a result, the company has now delivered 53,688 vehicles since the start of the year, up 122% year-over-year. Prospective investors should note that Xpeng has resumed double-shift production at its Zhaoqing plant as supply chains and key manufacturing areas in China are gradually recovering. So, would you consider adding XPEV stock to your watchlist?
Futu is a digitized brokerage and wealth management for investors around the globe. For those unaware, its advanced investing platform has transformed the investing experience and primarily serves the emerging affluent population. The company provides investment services through its proprietary digital platforms, Futubull and moomoo, each a highly integrated application accessible through any mobile device, tablet, or desktop. FUTU stock is up more than 25% as of 10:21 a.m. ET. This came after the company reported its first-quarter business updates.
Despite all the market volatility, the company still achieved solid first quarter growth in multiple metrics. During the quarter, the total number of users on moomoo and Futubulll was 18.1 million, up 27.1% year-over-year. Meanwhile, its total number of paying clients was 1,326,163, representing an increase of 67.9% compared to the prior year’s quarter. All things considered, Futu demonstrated its resilience with several upbeat highlights. With that in mind, would you bank on the future of FUTU stock?
Following that, let us look at the transportation company, BYD. Its primary business involves the manufacture and sales of transportation equipment, including electric vehicles and buses. Besides that, BYD also engages in the manufacture and sales of electronic parts and components and electronic devices for daily use. BYDDF stock has been on a bullish momentum, rising more than 30% within the past month.
Recently, rumors are suggesting that BYD could be in the process of acquiring six lithium mines in Africa. Those familiar with the industry would be aware that lithium is an important material to make batteries. The six lithium mines may have more than 25 million tons of ore with a 2.5% lithium oxide grade. This translates to up to 1 million tons of lithium carbonate. Should the deal materialize, it could strengthen BYD’s hold on the supply of a key material. For now, these are all speculative and investors should tread carefully before making any investment decisions. Thus, would you consider BYDDF stock as a top Chinese stock to watch?
Last but not least, let us look at the Chinese tech company, NetEase. The company has an Online Game Service segment that engages in the development and operation of online games. Some of its notable games include Westward Journey, the Onmyoji series, and many more. Aside from that, it also has an Innovative Businesses and Others segment that provides Netease Cloud Music, Netease Mail, and Netease News. In May, there were several positive updates by the company that could spark the interest of investors.
For starters, NetEase unveiled June 23 as the official release date for Diablo Immortal™, a highly anticipated game among gaming enthusiasts. On a sense of scale, pre-registration for the game has surpassed 15 million in China across all platforms. On top of that, NetEase also announced its first-quarter earnings report. Its net revenue for the quarter was $3.7 billion, up 14.8% year-over-year. Out of which, Online game services contributed $2.7 billion while Cloud Music contributed $326.1 million. Safe to say, all its business lines are making progress as the company looks forward to creating more value for its shareholders. Considering these factors, would NTES stock be a viable long-term investment?