In this article, we will list the 5 Best Chinese Stocks to Buy According to Hedge Funds. Please visit 10 Best Chinese Stocks to Buy According to Hedge Funds, if you would like to see the extended list and the methodology behind it.
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. (NYSE:DQ) 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. (NYSE:DQ) will reduce utilization/production and start selling at market prices.
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In Q1 2026, Daqo New Energy Corp. (NYSE:DQ) 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. (NYSE:DQ) 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. (NYSE:XPEV) 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. (NYSE:XPEV) 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. (NYSE:XPEV) 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. (NYSE:EDU) 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. (NYSE:EDU) 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. (NYSE:EDU) 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. (NASDAQ:JD) 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. (NASDAQ:JD) 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. (NASDAQ:BIDU) 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. (NASDAQ:BIDU). 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. (NASDAQ:BIDU) 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.
While we acknowledge the potential of BIDU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BIDU and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
