13 Best Chinese Stocks To Buy Right Now

Hamna Asim
13 min read

In This Article:

In this article, we discuss 13 best Chinese stocks to buy now. If you want to skip our discussion on the Chinese economy, head over to 5 Best Chinese Stocks To Buy Right Now. 

The Chinese economy, once expected to quickly recover in 2023 and continue as a global growth engine, has experienced a slowdown, being labeled a "drag" on world output by the International Monetary Fund (IMF). Despite challenges like a property crisis, weak spending, and high youth unemployment, China achieved its official growth target of around 5% for 2023. However, this is below the pre-COVID annual growth average of 6%, and concerns are rising about 2024 and the possibility of decades of stagnation without significant market reforms. The risk of falling into the "Middle Income Trap," where emerging economies struggle to reach high-income status, is highlighted by Derek Scissors of the American Enterprise Institute, a center-right think tank.

Major international investment banks, including Goldman Sachs and Morgan Stanley, anticipate a slower growth rate for China's economy in 2024 compared to the previous year. The average prediction among these banks suggests a 4.6% increase in real GDP for 2024, down from the expected 5.2% growth in 2023. According to Haibin Zhu, JPMorgan’s Chief China Economist and Head of Greater China Economic Research, and his team:

“An important task in 2024 is to manage the downside risk in the economy, particularly from the housing market correction and its spillover risks. Deflation pressure will likely fade in 2024, with the turnaround in global commodity prices and domestic pork prices, but low inflation will stay along with insufficient domestic demand.” 

Similarly, Goldman Sachs analysts expressed their views in their 2024 outlook:

“The Chinese economy did not follow the script in 2023. Overall, we expect macro policy to ease notably [in 2024], particularly by the central government, in order to support the economy and to prevent real GDP growth from decelerating too much from 2023 to 2024.”

UBS analysts suggest that there is still room for growth in China, particularly in the continued migration of workers from rural to urban areas, along with investments in manufacturing, services, and renewable energy. Despite a growth rate of 3% to 4%, China's economic expansion continues to outpace that of developed economies.

During the Lunar New Year holiday this year, China experienced a notable increase in travel activity and spending, surpassing levels seen before the pandemic. Ministry of Culture and Tourism data revealed a 34.3% year-over-year rise in domestic trips, reaching 474 million, and a 47.3% increase in spending on domestic holiday trips, amounting to nearly 632.7 billion yuan ($87.95 billion). China Central Television, citing the ministry, reported a 19% increase in domestic trips and a 7.7% rise in spending compared to the same period in 2019. This positive data is particularly significant as Chinese policymakers are actively working to stimulate domestic consumption amidst deflationary pressures. During the holidays, the Chinese mainland experienced 3.6 million tourist departures and 3.23 million tourist arrivals. Mutual visa-free travel agreements with certain countries contributed to the recovery in both outbound and inbound travel. The Lunar New Year is considered a crucial metric for assessing consumer appetite in China, being the country's most important holiday. 

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