In this article, we will take a look at the best Chinese stocks to buy according to hedge funds.
The Chinese market has long been a combination of compelling opportunities and consistent uncertainty. From a continuously evolving regulatory landscape to shifting market trends, investor sentiment has fluctuated sharply in recent years. Investors are watching where the smart money flows, focusing on companies with strong fundamentals and solid positioning.
As reported by Reuters on April 21, Bridgewater China continues to see resilience in Chinese equities, while remaining tilted bullish on gold. This comes despite a historic drawdown in March reported by its onshore funds. Global investors closely watch the Chinese unit’s market outlook for guidance on macro trends and portfolio allocation, especially with the Iran war reshaping the market landscape.
In a letter sent in April, Bridgewater (China) Investment Management said, “Chinese assets held up better than most global counterparts,” due to its sustained energy reserve investment. The letter further added that Beijing has “ample policy room, tools and capability” to respond if the outlook worsens. With that said, the comparatively strong performance of Chinese assets over the last few months is increasingly catching the attention of fund managers.
Keeping this view in mind, we have compiled a list of the 10 best Chinese stocks to buy according to hedge funds.
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Our Methodology:
For this article, we began by filtering for stocks in the Chinese market having a market capitalization of over $1 billion. Next, we shortlisted stocks with an upside potential of more than 10% and the highest number of hedge fund holdings. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are then ranked by the number of hedge fund holdings, based on Insider Monkey’s database, as of Q4 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. JinkoSolar Holding Co., Ltd. (NYSE:JKS)
Number of Hedge Fund Holders: 11
On April 29, TheFly reported that UBS trimmed the price target on JinkoSolar Holding Co., Ltd. (NYSE:JKS) to $23 from $25 and reiterated a Neutral rating on the stock. This comes after the earnings report.
When JinkoSolar Holding Co., Ltd. announced its results for Q1 2026, it delivered earnings of -8.85, which was better than the forecasted -14.38. On the other hand, the company’s revenue came in at $12.25 billion, lower than the anticipated $19.27 billion. What made the results interesting were the company’s improved gross margin and milestone in module deliveries, exceeding 400 gigawatts.
Looking ahead, JinkoSolar Holding Co., Ltd. projects EPS between $0.98 and $1.69. This points to a potential rise in profits. Similarly, revenue forecasts indicate a focus on recovery and growth amid regulatory changes in key markets. Specialized modules and efficient products are expected to power growth and drive market differentiation for the company.
JinkoSolar Holding Co., Ltd. is a Guangxin-based company specializing in photovoltaic products. Founded in 2006, the company provides solar modules, silicon wafers, and silicon materials, among others.
9. iQIYI, Inc. (NASDAQ:IQ)
Number of Hedge Fund Holders: 15
On April 22, Morgan Stanley cut the price target on iQIYI, Inc. (NASDAQ:IQ) from $2.10 to $1.50 and reiterated an Equalweight rating on the stock. The firm also lowered its revenue forecasts by 6%, 8%, and 10% for 2026, 2027, and 2028, respectively. Not only that, non-GAAP net profit estimates for the same period dropped 71%, 40%, and 37%. This was mainly due to operating de-leveraging.
According to Morgan Stanley, early signs of rebound in user acquisition, engagement, and the competitive environment will take at least six months to materialize. The firm sees upside to be driven by content enhancements and potential blockbusters, especially mid-form series and AI-generated content, in addition to offline expansion. Apart from these, a favorable regulatory landscape, including faster license feedback, could drive further upside.
What’s interesting is the company’s strategy that leverages AI to broaden supply, which the firm believes differentiates iQIYI, Inc.. From production know-how and creator services to IP access and commercialization capabilities, the company enjoys a strong foundation, Morgan Stanley noted.
Jefferies sees the company’s total revenue matching the expectations, with divergent performance observed across segments. The firm trimmed the price target on iQIYI, Inc. to $1.82 from $2.22 and reiterated a Buy rating on April 22.
iQIYI, Inc. is a Beijing-based online entertainment video services provider. Founded in 2009, the company operates an internet video content platform, provides experience services, and offers membership and licensing services, among others.
8. Chagee Holdings Limited (NASDAQ:CHA)
Number of Hedge Fund Holders: 16
As of April 24, Chagee Holdings Limited (NASDAQ:CHA) has a Buy rating from 75% of the analysts covering the stock, with the remaining 25% neutral, making the stock one of the best Chinese stocks to buy. Among the firms bullish on the company is JPMorgan. The firm upgraded the company to Overweight from Neutral and lifted the price target from $11.50 to $16 on April 2. The firm associated this optimism with better same-store sales dynamics and anticipations of narrowing declines.
JPMorgan believes revenue and profit will largely remain unchanged in 2026, relative to the 2025 level. This is in line with the management’s outlook. Additionally, the firm anticipates a rebound in same-store sales, overseas store expansion, and cost control to drive a gradual re-rating. What makes Chagee Holdings Limited appealing is its Korea market entrance and possible rises in shareholder returns through cash dividends or share buybacks, the firm highlighted.
On the other hand, Macquarie trimmed the price target on Chagee Holdings Limited to $9.30 from $15.40 and reiterated a Neutral rating on April 1. The firm cited poor Q4 performance, with revenue falling 11% YoY and rising expenses weighing on profit.
Chagee Holdings Limited is a Shanghai-based company that owns and operates teahouses. Incorporated in 2017, the company specializes in tea drinks and related raw materials, packaging, and other teahouse supplies.
7. WeRide Inc. (NASDAQ:WRD)
Number of Hedge Fund Holders: 19
On April 17, Goldman Sachs started coverage on WeRide Inc. (NASDAQ:WRD) with a Buy rating and a price target of HK$54.23. Overall, the company is a consensus Buy among all of the analysts covering the stock.
According to Goldman Sachs, the company’s total revenues are set to achieve a CAGR of 80% over the period of 2025 to 2030, all thanks to increasing revenues from Robotaxi operation services. This, along with global fleet expansion, acceleration in China and international markets, and improved user engagement, will support the rise in revenue.
Although the stock has performed weakly in the past six months, WeRide Inc. is engaged in strategic initiatives. On April 24, the company disclosed that the WeRide Driving 3.0 advanced driver assistance system now supports various computing platforms, particularly NVIDIA DRIVE and Qualcomm Snapdragon. During Auto China 2026, the company signed a deal with SiEngine Technology to fully integrate chip and algorithm technologies for L2++ ADAS deployment. These partnerships reinforce the company’s position as one of the best Chinese stocks to buy.
WeRide Inc. is a Guangzhou-based investment holding company that offers autonomous driving products, driver-assistance system solutions, and an online ride-hailing platform.
6. Bilibili Inc. (NASDAQ:BILI)
Number of Hedge Fund Holders: 20
On April 13, Morgan Stanley upgraded Bilibili Inc. (NASDAQ:BILI) from Equalweight to Overweight and lifted the price target to $31 from $25. This uplift matches the stock’s performance, with a one-year price appreciation of approximately 29%.
The firm’s optimism is based on the upcoming three games to power inflection in the latter half of the year. The star of the games will be Romance of the Three Kingdoms: Wangdaotianxia, with a potential launch by the last quarter. The contribution will be followed by NCard and Lumi Master. According to Morgan Stanley, the game has the potential to generate annualized gross earnings of 1.7 billion yuan. That said, the firm forecasts 2027 game revenue of 7.8 billion yuan, relative to the consensus estimate of 6.8 billion yuan.
Morgan Stanley anticipates manageable cannibalization between San Mou and San Wang. Previously, San Mou was behind the quarterly game revenue rise through Q2 FY25. The firm highlighted that while San Mou provides a lighter SLG experience, San Wang is for a more hardcore SLG audience.
Bilibili Inc. is a Chinese entertainment services company offering digital content, advertising services, and IP derivatives. Founded in 2009, the company also deals in development activities, e-commerce business, and game distribution activities.
5. Daqo New Energy Corp. (NYSE:DQ)
Number of Hedge Fund Holders: 20
On April 30, Roth Capital cut the price target on Daqo New Energy Corp. from $25 to $19 and reiterated a Neutral rating. In a research note, the analyst highlights the company’s Q1 miss due to weak average selling prices and inventory impairment, estimating it to be nearly $100 million.
While management expects updated minimum price floor guidance in June, the firm believes that if the price guidance fails to come through, Daqo New Energy Corp. will reduce utilization/production and start selling at market prices.
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In Q1 2026, Daqo New Energy Corp. reported an EPS of -$1.31 and revenue of $26.7 million, significantly underperforming the estimated -$0.35 and $166.93 million, respectively. The company attributed this disappointing performance to the struggling polysilicon market, lower sales volumes, and inventory impairment charges. However, as highlighted by management, the company’s zero debt and significant liquidity, along with planned strategic initiatives, are positive factors for the company. This makes DQ one of the best Chinese stocks to buy.
Daqo New Energy Corp. is a provider of polysilicon to photovoltaic product manufacturers. The company’s products are utilized in ingots, wafers, and modules for solar power solutions.
4. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 27
On April 22, TheFly reported that BNP Paribas downgraded XPeng Inc. (NYSE:XPEV) from Neutral to Underperform, with a price target of HK$59. Overall, 72% of the analysts covering the stock are bullish, 22% appear neutral, and the remaining 6% are bearish.
Later on April 23, Reuters reported that XPeng Inc. plans large-scale production of its “flying” cars and humanoid robots for the next year and Q4 2026, respectively. According to President Brian Gu, there is “tremendous potential” to enhance cooperation with Volkswagen, which started mass production of its first EV in partnership with XPeng.
While emphasizing its willingness to collaborate with other automakers, Gu said,
“There are a lot of areas that we can partner and really provide value to each other.”
During the conversation with Reuters ahead of the Beijing Auto Show, Gu mentioned that XPeng Inc. would begin robotaxi tests in the southern Chinese city of Guangzhou in 2026, with 2027 being a “critical year” for “tests around the world with partners.” He also added that “more than 50% of the revenue should come from outside of China” in the upcoming 5 to 10 years. Thus, the company is well-positioned for long-term growth, making it one of the best Chinese stocks to buy according to hedge funds.
XPeng Inc. is a Guangzhou-based provider of smart electric vehicles. The company’s core offerings include sports sedan, sport utility vehicle (SUV), multi-purpose vehicle (MPV), and a smart in-car operating system.
3. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Number of Hedge Fund Holders: 33
On April 22, BofA Securities lifted the price target on New Oriental Education & Technology Group Inc. to $73.20 from $71.30 and reaffirmed a Buy rating. In its analysis, the firm cited the company’s 19% YoY February quarter revenue growth, which exceeded the forecasted 11% to 14%. This strong performance was associated with test preparation and EB segments.
Although higher revenue assumptions were compensated for by lower margin assumptions for once-only restructuring expenses, BofA Securities reiterated its FY26 guidance while raising its estimates by 6% for FY27.
When New Oriental Education & Technology Group Inc. reported its financial results for the third quarter, it delivered EPS that was $0.11 better than the projected EPS of $0.84. Additionally, revenue came in at $1.42 billion, exceeding the forecasted $1.36 billion. Despite these positive metrics, the market remains cautious about the macroeconomic environment. During its earnings call on April 22, the company highlighted that the future performance will be driven by the integration of AI and the acceleration of its OMO platform, making it one of the best Chinese stocks to buy.
New Oriental Education & Technology Group Inc. is a Beijing-based provider of private educational services. Founded in 1993, the company operates through four segments, including Educational Services and Test Preparation Courses, and Overseas Study Consulting Services.
2. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 51
As of April 23, 90% of the analysts covering the stock remain bullish on JD.com, Inc. (NASDAQ:JD). On April 16, Bernstein SocGen Group lifted the price target on the company from $34 to $36 and maintained an Outperform rating. Beyond its popularity with analysts, the company stands out as one of the best Chinese stocks according to hedge funds.
Analysts at Bernstein believe the company’s shifted focus on profits will accelerate its momentum. According to the firm, Q1 profits appear ahead of consensus estimates, indicating that 2027 profits surpassing 2024 levels will leave the stock trading at a sub-7x next year P/E ratio.
Two days earlier, Barclays also elevated the price target on JD.com, Inc. to $41 from $34 and reiterated an Overweight rating. In addition to this, the firm raised its Q1 guidance for the company due to improved demand dynamics across key business segments. The firm forecasts home appliance and electronics revenue growth to recover as early as the third quarter, with narrowed food delivery losses.
JD.com, Inc. is a Chinese company that provides supply chain-based technology and services. Founded in 2006, the company operates through three segments: JD Retail, JD Logistics, and New Businesses.
1. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 57
On April 14, Macquarie trimmed the price target on Baidu, Inc. (NASDAQ:BIDU) to $158 from $177 and maintained an Outperform rating. If we consider the stock’s performance, it has witnessed a year-to-date decline of nearly 14%. Even then, the firm anticipates AI cloud infrastructure to enhance AI-driven revenue in Q1 of the current fiscal year.
With advertising appearing soft, Macquarie expects advertising revenue to stay under strain in the times ahead. What sets Baidu, Inc. apart as one of the best Chinese stocks to buy is its continuous investments in AI technology and cost optimization measures.
On the same day, BofA Securities reaffirmed a Buy rating on Baidu, Inc.. According to the firm, Baidu Core’s Q1 topline and bottom line will be in line with expectations. With a price target of $180, the firm keeps its first-quarter topline guidance and adjusted operating profit at a 2% and 24% YoY decline, respectively. That said, the firm anticipates revenue growth rebound throughout the second and fourth quarters of FY26.
Baidu, Inc. is a Beijing-based provider of a range of services, including internet content and internet maps. Incorporated in 2000, the company operates in two segments: Baidu General Business and iQIYI.
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