In this article, we discuss 5 cheap Chinese stocks to buy now. If you want to see more stocks in this selection, check out 10 Cheap Chinese Stocks To Buy Now.
5. Kanzhun Limited (NASDAQ:BZ)
Number of Hedge Fund Holders: 25
Share Price as of October 25: $11.19
Kanzhun Limited (NASDAQ:BZ) was founded in 2013 and is headquartered in Beijing, China. It operates an online recruitment platform which assists the recruitment process between candidates and employers. Kanzhun Limited (NASDAQ:BZ), which went public in New York last year, is about to have a Hong Kong IPO. Kanzhun Limited (NASDAQ:BZ) is one of the top cheap Chinese stocks to invest in.
On September 13, Barclays analyst Jiong Shao initiated coverage of Kanzhun Limited (NASDAQ:BZ) with an Equal Weight rating and a $21 price target. The company has a prominent position in job recruitment apps with its market-leading recommendation engine, the analyst told investors. However, short-term headwinds from COVID lockdowns and the weak job market warrant a neutral rating, as per the analyst.
Among the hedge funds tracked by Insider Monkey, 25 funds were long Kanzhun Limited (NASDAQ:BZ) at the end of the second quarter of 2022, up from 20 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 11.65 million shares worth $306.30 million.
4. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 25
Share Price as of October 25: $10.51
NIO Inc. (NYSE:NIO) is a Shanghai-based manufacturer of smart electric vehicles in China. Priced at under $11 as of October 25, NIO Inc. (NYSE:NIO) is one of the best affordable Chinese stocks to buy now. NIO Inc. (NYSE:NIO) is entering the European market by selling its vehicles in Germany, Netherlands, Denmark, and Sweden following the electric vehicle maker’s entry into the Norwegian market last year.
On October 6, Mizuho analyst Vijay Rakesh maintained a Buy rating on NIO Inc. (NYSE:NIO) but trimmed the price target on the stock to $40 from $42. The analyst believes the September quarter for electric vehicle makers was largely as expected, given supply chain and logistics “remain a challenge.” However, he sees resilient demand with a multi-year electrification transition on its way, and China is the market leader in this regard. China’s EV penetration at the end of Q3 2022 could reach 25% to 30% of total auto sales, the analyst told investors.
According to Insider Monkey’s Q2 data, NIO Inc. (NYSE:NIO) was part of 25 hedge fund portfolios, compared to 26 in the preceding quarter. Jim Simons’ Renaissance Technologies held the largest position in the company, with 17.7 million shares valued at $386 million.
Here is what Horos Asset Management has to say about NIO Inc. (NYSE:NIO) in its Q1 2022 investor letter:
“At the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information. While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. Other entities, such as the electric vehicle manufacturer Nio, have just started trading on this stock market.”
3. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 28
Share Price as of October 25: $15.98
Li Auto Inc. (NASDAQ:LI) was founded in 2015 and is headquartered in Beijing, China. The company designs, develops, manufactures, and sells new energy vehicles in the People’s Republic of China. Li Auto Inc. (NASDAQ:LI) delivered 11,531 vehicles in September 2022, up 62.5% year-over-year, bringing third quarter deliveries to 26,524, which is a 5.6% increase on a year-over-year basis. The total deliveries of Li Auto Inc. (NASDAQ:LI) vehicles reached 211,015 at the end of September.
Morgan Stanley analyst Tim Hsiao on August 29 said that an announcement on Li Auto Inc. (NASDAQ:LI)’s mobile app indicates that the company will delay overall August delivery of L9 SUVs to August 30-September 4, citing power cuts in Sichuan and a “production hiccup” in its range extension system. However, the analyst assigned an Overweight rating to the stock and kept a $53 price target.
According to Insider Monkey’s data, 28 hedge funds were bullish on Li Auto Inc. (NASDAQ:LI) at the end of Q2 2022, with collective stakes worth $1.40 billion, compared to 28 funds in the prior quarter worth $1.25 billion. D E Shaw is a prominent position holder in the company, with 3.6 million shares valued at $139 million. The hedge fund boosted its Li Auto Inc. (NASDAQ:LI) stake by a whopping 885% in the second quarter of 2022.
2. H World Group Limited (NASDAQ:HTHT)
Number of Hedge Fund Holders: 30
Share Price as of October 25: $27.22
H World Group Limited (NASDAQ:HTHT) is a Shanghai-based company that develops leased, owned, and franchised hotels in the People’s Republic of China. On October 25, H World Group Limited (NASDAQ:HTHT) reported that third quarter’s revenue per available room rebounded to 90% of the 2019 levels in its Legacy-Huazhu business, driven by the pent-up leisure travel demand in the summer. H World Group Limited (NASDAQ:HTHT) is one of the top cheap Chinese stocks to buy now.
On August 31, HSBC analyst Lina Yan reiterated a Buy rating on H World Group Limited (NASDAQ:HTHT) but lowered the price target on the shares to $46.90 from $52.20 after the Q2 results.
According to Insider Monkey’s second quarter database, 30 hedge funds held stakes worth $567.5 million in H World Group Limited (NASDAQ:HTHT), compared to 27 funds in the prior quarter worth $579.6 million.
1. KE Holdings Inc. (NYSE:BEKE)
Number of Hedge Fund Holders: 37
Share Price as of October 25: $10.26
KE Holdings Inc. (NYSE:BEKE) is a Beijing-based company that operates an integrated online and offline platform for housing transactions and services in China. The company has three segments – Existing Home Transaction Services, New Home Transaction Services, and Emerging and Other Services. It is one of the best cheap Chinese stocks to invest in.
Barclays analyst Jiong Shao on August 25 raised the price target on KE Holdings Inc. (NYSE:BEKE) to $26 from $24 and maintained an Overweight rating on the shares. The company’s “much stronger than expected” Q2 results offered a 30% revenue beat and indicate that Chinese consumers, especially those in higher tier cities, are “coming out in droves to scoop up homes,” the analyst told investors in a research note.
Among the hedge funds tracked by Insider Monkey, Andreas Halvorsen’s Viking Global held the leading position in KE Holdings Inc. (NYSE:BEKE), comprising 10.4 million shares worth nearly $187 million. Overall, 37 hedge funds in the second quarter database of Insider Monkey reported owning stakes in KE Holdings Inc. (NYSE:BEKE), up from 34 funds in the prior quarter.
Here is what Tao Value has to say about KE Holdings Inc. (NYSE:BEKE) in its Q3 2021 investor letter:
“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited KE holdings (ticker: BEKE), for high potential regulatory risk and the passing of the visionary founder & CEO Zuo Hui (who was a core tenet of our original thesis).”
You can also take a look at Top Small Cap Stocks With Huge Growth Potential and 10 Best Pharma Stocks To Buy.
