In this article, we will take a look at 8 High Growth Chinese Stocks To Buy.
China’s stock market boom is attracting heightened attention from regulators after trading activity reached record highs, causing officials to take steps to limit leverage, even though a number of investors believe the bull run is only beginning. Daily turnover on the Shanghai, Shenzhen, and Beijing stock exchanges also soared to new highs, with trading volume reaching 3.99 trillion yuan ($556 billion) on January 21, exceeding the previous peak of 3.48 trillion yuan achieved in October 2024.
According to Lu Ting, the chief China economist at Nomura Holdings, the Chinese stock market’s recovery during the last year and a half deserves full honors. Speaking on China’s three major stock exchanges’ latest move to strengthen minimum margin demands for leveraged trading, Lu stated that an essential goal for this bull market is to steer clear of another instance of the “frenzied” surge seen in 2015 and the harsh fall that came next.
From July to August of the previous year, the overall policy attitude toward the market remained fairly conservative and consistent. Looking ahead, he believes that if policy assistance continues to be adequately applied, second-half economic indicators should rise further.
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Our Methodology
Our selection criteria focused on Chinese stocks with a 5-year revenue growth rate of (at least 30%), thus indicating solid growth. In addition, we ranked these stocks based on the number of hedge funds invested in each of them as of Q3 2025.
Why do we care about what hedge funds do? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
8. Li Auto Inc. (NASDAQ:LI)
5-Year Revenue Growth Rate: 244.86%
Number of Hedge Fund Holders: 14
Li Auto Inc. (NASDAQ:LI) ranks among the best high growth Chinese stocks to buy. On January 7, Freedom Capital Markets cut its price target for Li Auto Inc. (NASDAQ:LI) from $34 to $25 while maintaining a Buy rating for the company’s shares. According to the firm, Li Auto Inc. (NASDAQ:LI) recorded mixed quarterly performance and offered a weak forecast for the upcoming quarter.
Chinese EV producers are currently caught in an intense price war to offset sluggish domestic demand, putting major pressure on Li Auto’s sales. In this environment, Freedom Capital stated that the company is striving to strike a balance between cutting product pricing and optimizing costs.
The firm stated that Li Auto’s future performance will be determined by technology advances that will cut car costs while increasing customer attractiveness, as well as the company’s planned expansion into overseas markets.
Chinese EV maker Li Auto Inc. (NASDAQ:LI) specializes in smart SUVs and extended-range electric cars (EREVs). The company is a trailblazer in the effective marketing of extended-range electric vehicles.
7. Hesai Group (NASDAQ:HSAI)
5-Year Revenue Growth Rate: 41.78%
Number of Hedge Fund Holders: 20
Hesai Group (NASDAQ:HSAI) ranks among the best high growth Chinese stocks to buy. On January 15, BofA Securities reaffirmed its Buy rating for Hesai Group (NASDAQ:HSAI) and raised its price target to $32 from $25. The firm justified its target based on a combination of EV/sales and DCF valuation methodologies.
According to BofA, key catalysts surrounding Hesai Group (NASDAQ:HSAI) include the introduction of new business and sensing technology in the initial half of 2026, the release of improved ATX devices with new chips in the latter half, and additional regulatory developments concerning L3 advanced driver assistance systems.
Hesai Group (NASDAQ:HSAI) has also achieved significant advances in the lidar technology field. The company revealed that it has delivered over 2 million lidars in total, making it the first manufacturer to do so. Moreover, on January 6, NVIDIA picked Hesai Group (NASDAQ:HSAI) as a laser technology partner for its DRIVE AGX Hyperion 10 platform, which aims to achieve Level 4 autonomous driving capabilities.
Hesai Group (NASDAQ:HSAI) designs and manufactures high-performance lidar sensors for applications in autonomous driving, advanced driver-assistance systems (ADAS), and robotics.
6. Zai Lab Limited (NASDAQ:ZLAB)
5-Year Revenue Growth Rate: 98.33%
Number of Hedge Fund Holders: 21
Zai Lab Limited (NASDAQ:ZLAB) ranks among the best high growth Chinese stocks to buy. On January 7, UBS began coverage of Zai Lab Limited (NASDAQ:ZLAB) with a Buy rating and a $35 price target, citing the company’s transition from a China-centric commercial strategy to a global innovation powerhouse. The firm views Zai Lab Limited (NASDAQ:ZLAB) as a distinct biopharma platform poised for long-term global expansion by leveraging its strong China-based business while developing a pipeline of fully owned cancer and immunology assets.
According to UBS, the global pipeline indicates a trend toward high-value, innovative treatments that address numerous unmet needs, potentially redefining Zai Lab’s development path over the coming decade.
The bank believes that Zai Lab Limited (NASDAQ:ZLAB) is undervalued, given recent China commercial disappointments, and that the market doesn’t provide enough credit to its global pipeline, which UBS claims produces considerable long-term value for investors.
Zai Lab Limited (NASDAQ:ZLAB) is a commercial-stage biopharmaceutical company based in China and the United States. It is focused on discovering, developing, and commercializing therapies that address medical conditions with significant unmet needs in oncology, immunology, neuroscience, and infectious disease.
5. XPeng Inc. (NYSE:XPEV)
5-Year Revenue Growth Rate: 76.03%
Number of Hedge Fund Holders: 22
XPeng Inc. (NYSE:XPEV) ranks among the best high growth Chinese stocks to buy. On January 16, Macquarie lowered its price target for XPeng Inc. (NYSE:XPEV) from $32 to $26, while retaining an Outperform rating on the electric vehicle manufacturer. The firm referred to 2026 as a “transition year” for XPeng Inc. (NYSE:XPEV), as the company intends to grow its product selection with four additional models despite the possibly declining electric-vehicle interest in China.
Analyst Eugene Hsiao stated that XPeng’s net income profitability threshold could vary drastically depending on the revenue makeup of Volkswagen volume-based costs, with “Other” gross profit expected to fall 27% year-over-year in 2026. The firm also reduced its fiscal year 2026 volume forecast for XPeng Inc. (NYSE:XPEV) by 8% to 545,000 units, citing decreased federal subsidies for the company’s MONA M03 product.
XPeng Inc. (NYSE:XPEV) is a Chinese smart electric vehicle manufacturer. The company designs and produces intelligent EVs. XPeng also develops proprietary autonomous driving software, advanced driver-assistance systems, and AI-powered smart cockpits.
4. Atour Lifestyle Holdings Limited (NASDAQ:ATAT)
5-Year Revenue Growth Rate: 34.74%
Number of Hedge Fund Holders: 28
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) ranks among the best high growth Chinese stocks to buy. CLSA began coverage of Atour Lifestyle Holdings Limited (NASDAQ:ATAT) on January 2 with an Outperform rating and a $49 price target, citing Atour’s distinctive features and services as key elements in its popularity as a premium hotel alternative in the hospitality sector.
CLSA stated that Atour’s asset-light strategy and supply chain capabilities enable its net profit to be less volatile during periods of low revenue per available room (RevPar), hence stabilizing the business model.
CLSA highlighted that Atour’s retail operation is a strategic way of profiting from brand value. The firm stated that it expects Atour’s hotel count to increase at a 23% five-year compound annual growth rate, led by the growth of the Atour Light and Savhe brands, while forecasting that the company’s three-year EBITDA compound annual growth rate will reach 28%.
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) is a Chinese hospitality and lifestyle company that operates a rapidly expanding network of hotels. It is also the first Chinese hotel chain to develop a scenario-based retail business.
3. Full Truck Alliance Co., Ltd. (NYSE:YMM)
5-Year Revenue Growth Rate: 34.26%
Number of Hedge Fund Holders: 30
Full Truck Alliance Co., Ltd. (NYSE:YMM) ranks among the best high growth Chinese stocks to buy. On January 13, Morgan Stanley retained its Overweight rating and $14 price target for Full Truck Alliance Co., Ltd. (NYSE:YMM), citing strong growth in the company’s primary transaction commission sector. The firm expects YMM’s transaction commission revenue to expand by more than 30% year-over-year in 2026, with the company’s long-term shareholder return strategy being seen as gradually favorable.
Morgan Stanley expects order volume to increase by 13-17% year-over-year in 2026, while overall revenue is likely to fall by 7% to RMB11.4-11.57 billion. Meanwhile, transaction commissions are expected to be RMB7.1 billion, representing a 32-34% increase year-over-year.
On the other hand, JPMorgan downgraded Full Truck Alliance Co., Ltd. (NYSE:YMM) from Neutral to Underweight on January 13, claiming that the risk-reward analysis for the company has “shifted meaningfully” as the YMM stock has fallen behind broader market indices since the start of 2025.
Full Truck Alliance Co., Ltd. (NYSE:YMM) is China’s leading digital freight platform. The company connects shippers with truckers through its mobile-based marketplace, streamlining logistics and reducing inefficiencies in the trucking industry.
2. NIO Inc. (NYSE:NIO)
5-Year Revenue Growth Rate: 51.82%
Number of Hedge Fund Holders: 34
NIO Inc. (NYSE:NIO) ranks among the best high growth Chinese stocks to buy. On January 15, Macquarie upgraded NIO Inc. (NYSE:NIO) from Neutral to Outperform, boosting its price target to $6.10. According to the firm, NIO’s fourth-quarter 2025 sales exceeded the upper end of its 125,000-unit forecast, with a healthy demand for ES8 and Firefly models generating a 44% quarter-over-quarter volume increase.
Macquarie noted NIO’s increased adoption of its Battery-as-a-Service (BaaS) initiative, which currently accounts for more than 80% of sales, highlighting that this should further protect the firm from industry headwinds by keeping potentially greater battery costs off the balance sheet.
The firm upgraded its Hong Kong and U.S. price targets by 15% and lifted its fiscal year 2026 volume prediction by 7% to 451,000 units, citing greater ES8 demand as the key driver.
Furthermore, NIO Inc. (NYSE:NIO) reported shipping 36,275 units in November, a 10% decrease from October’s 40,397. Despite this monthly dip, the company’s year-to-date deliveries are up 45.6% over the same period in 2024, totaling 277,893 vehicles.
NIO Inc. (NYSE:NIO) is a leading Chinese smart electric vehicle manufacturer. The company designs, develops, and sells premium EVs. It is also building an ecosystem around battery-swapping technology, autonomous driving, and smart connectivity.
1. PDD Holdings Inc. (NASDAQ:PDD)
5-Year Revenue Growth Rate: 65.84%
Number of Hedge Fund Holders: 73
PDD Holdings Inc. (NASDAQ:PDD) ranks among the best high growth Chinese stocks to buy. Morgan Stanley reaffirmed an Overweight rating on PDD Holdings Inc. (NASDAQ:PDD) on January 15, with a $148 price target, though it removed the company from its Top Pick list due to growing regulatory worries and market uncertainty for the Chinese internet sector.
The firm pointed to the General Office of Anti-Monopoly and Anti-Unfair Competition Commission’s recent probe into food delivery platforms, as well as SAMR’s anti-monopoly inquiry into TCOM, as signs of increased regulatory risks for China’s internet industry.
Morgan Stanley also noted that China’s delayed consumer recovery may pose additional hurdles for e-commerce services, like PDD Holdings Inc. (NASDAQ:PDD), in 2026.
Meanwhile, Freedom Capital Markets increased its price target for PDD Holdings Inc. (NASDAQ:PDD) to $170 from $140 on January 6, while keeping a Buy rating on the company. The firm stated that it had demonstrated resilience by responding to US tariffs and eliminating the de minimis duty-free level for imports from China.
PDD Holdings Inc. (NASDAQ:PDD) is a global commerce company that operates several businesses, including two key ventures: Pinduoduo and Temu. Pinduoduo is an e-commerce platform with a wide range of products, whereas Temu is an online marketplace that specializes in heavily discounted consumer goods.
While we acknowledge the potential of PDD 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 PDD and that has 100x upside potential, check out our report about this cheapest AI stock.
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