In this article, we will look at the Goldman Sachs China Stocks: 10 Stocks to Buy.
Goldman Sachs analysts remain bullish about Chinese stocks, as the Yuan continues to strengthen at the back of US dollar Weakness. According to the analysts, the stocks have shown resilience amid the ongoing trade spat with the US. Consequently, the analysts expect every 1% appreciation in Yuan to boost Chinese equities by 3%. Improved corporate earnings outlook and stronger foreign inflows are other factors that should continue to drive Chinese equities in the market.
Morgan Stanley is also bullish on Chinese equities. Morgan Stanley strategist Kinger Lau and colleagues wrote:
“Chinese stocks tend to perform well when the currency rises. The outlook for the currency lends support to their overweight stance,”
The Chinese stock index MSCI China Index has recouped all its losses since President Donald Trump’s April 12 Tariff offensive. Likewise, Chinese assets have benefited from diversification away from the US markets amid the tariff and tax cuts concerns.
Goldman Sachs expects Chinese stocks to outperform on the government’s recent pivot to supporting the private economy. Additionally, Goldman Sachs expects artificial intelligence to be the foundation of most Chinese companies. Consequently, companies with capital to invest in AI research and infrastructure are well-positioned to remain competitive in the long run.
With that in mind, let’s take a look at Goldman Sachs China Stocks: 10 Stocks to Buy
A senior executive looking up at a large boardroom filled with the stocks their company manages.
Our Methodology
To make the list of Goldman Sachs China Stocks: 10 Stocks to Buy, we scanned the markets focusing on stocks of Chinese companies that Goldman Sachs remains bullish on. We focused on stocks with significant upside potential and that were popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on Goldman Sachs Group Inc.’s stakes in them, as of Q1 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Goldman Sachs China Stocks: 10 Stocks to Buy
10. Pony AI Inc. (NASDAQ:PONY)
Number of Hedge Fund Holders: 13
Goldman Sachs Equity Stake: $139,400
Pony AI Inc. (NASDAQ:PONY) is one of Goldman Sachs’ top Chinese stock picks. On June 17, the Chinese autonomous driving company unveiled its seventh generation Robotaxi at the 2025 International Automotive & Supply Chain Expo in Hong Kong.
Marking the company’s first debut in the city, the Gen 7 robotaxi showcases the company’s advancement in autonomous driving hardware and software. The Robotaxi utilizes 100% automotive-grade components and boasts a 70% cost reduction in its autonomous driving kits. It is also designed for adaptability and supports integration across various vehicles.
The Robotaxi has 34 sensors spanning six categories to offer comprehensive detection coverage from 360-degree blind support monitoring to identifying objects 650 meters away. Therefore, autonomous taxis can operate in urban and intercity environments, including highways, ring roads, and airports.
A successful deployment in Hong Kong would enable Pony.ai’s robotaxis to move through several GBA zones, including train stations and airports, facilitating smooth interstate autonomous transportation. It is also expected to improve citizens’ mobility with convenient, safe, and dependable self-driving services.
Pony.ai is the only company authorized to operate autonomous ride-hailing services in China’s tier-I cities. Therefore, adding the Gen-7 robotaxi will expand the company’s fleet. The company plans to have over 1,000 vehicles by the end of 2025.
Pony AI Inc. (NASDAQ:PONY) is a global autonomous driving technology company that develops and commercializes self-driving systems for vehicles. It specializes in building the safest autonomous driving capabilities and aims to revolutionize transportation.
9. Dada Nexus Ltd (NASDAQ:DADA)
Number of Hedge Fund Holders: 17
Goldman Sachs Equity Stake: $512,554
Dada Nexus Ltd (NASDAQ:DADA) is one of Goldman Sachs’ top Chinese stock picks. On June 16, the company completed its privatization through a merger with JD Sunflower Merger Sub Limited, a wholly owned subsidiary of JD.com. Shareholders approved the deal at $2.00 per ADS and $0.50 per ordinary share, making Dada a fully owned JD.com entity and delisting it from Nasdaq effective June 17.
As part of the transition, Dada Nexus will file Form 15 with the SEC to suspend its reporting obligations, officially exiting U.S. public markets. The move marks a strategic shift as the company becomes a private subsidiary under JD.com’s umbrella.
This acquisition strengthens JD.com’s competitive edge by integrating Dada’s advanced local delivery infrastructure into its broader e-commerce ecosystem. The deal was supported by financial advisors Kroll and UBS, with legal counsel from Gibson Dunn and Skadden.
Dada Nexus Ltd (NASDAQ:DADA) runs China’s leading on-demand retail and delivery platform. Its JD NOW service connects consumers with retailers and brands for local shopping via web and mobile. At the same time, Dada NOW offers real-time, last-mile delivery across cities for businesses of all sizes and individual users. Together, the platforms create a seamless ecosystem for fast, local commerce.
8. EHang Holdings Limited (NASDAQ:EH)
Number of Hedge Fund Holders: 16
Goldman Sachs Equity Stake: $2.63 Million
EHang Holdings Limited (NASDAQ:EH) is one of Goldman Sachs’ top Chinese stock picks. On June 18, the company confirmed the expansion of its strategic collaboration with Gotion High-Tech Co, a leading innovator in power battery solutions.
The enhanced collaboration marks a significant step in the two companies’ push to improve electric vertical take-off and landing (“eVTOL”) aircraft powering. The company plans to advance the development of power systems for Ehang Holding’s flagship EH216 series, a pilotless eVTOL aircraft. The ultimate goal is to enhance the EH216 series range, thrust performance, and operational safety.
EHang Holdings and Giant Gotion also plan to advance a safe, intelligent, and sustainable low-altitude transportation ecosystem by leveraging cutting-edge battery technologies. Gotion is to deliver customized battery solutions tailored for the EH216 to contribute to the high-quality development of the low-altitude economy.
EHang Holdings Limited (NASDAQ:EH) specializes in developing autonomous aerial vehicle (AAV) technology platforms and solutions. It works on urban air mobility (UAM) and offers products and services for passenger transportation, logistics, innovative city management, and aerial media solutions.
7. JinkoSolar Holding Co., Ltd. (NYSE:JKS)
Number of Hedge Fund Holders: 9
Goldman Sachs Equity Stake: $8.52 Million
JinkoSolar Holding Co., Ltd (NYSE:JKS) is one of Goldman Sachs’ top Chinese stock picks. On June 13, the company’s board of directors approved a cash dividend of $0.325 per ordinary share of US$0.00002 each of the company’s ordinary shares. The dividend is to be paid on July 16 to holders of ordinary shares as of the close of trading on July 2, 2025.
JinkoSolar is to distribute about $68.1 million as part of the dividend offering. According to Chief Executive Officer Xiande Li, the dividend offering represents a return of capital to shareholders. It also underscores commitment to creating long-term value for shareholders.
The executive expects a continued focus on technological innovation, operational excellence, and global capability. The expansion should enable JinkoSolar Holdings to navigate the various market challenges and generate sustainable growth.
JinkoSolar Holding Co., Ltd (NYSE:JKS) is one of the world’s largest and most innovative solar module manufacturers. It distributes solar products and sells its solutions and services to a diversified international utility, commercial, and residential customer base.
6. Bilibili Inc. (NASDAQ:BILI)
Number of Hedge Fund Holders: 22
Goldman Sachs Equity Stake: $25.08 Million
Bilibili Inc. (NASDAQ:BILI) is one of Goldman Sachs’ top Chinese stock picks. On June 13, the company confirmed completing a previously announced repurchase right relating to 1.25% Convertible Senior Notes due 2027.
According to information from Deutsche Bank, the $66,000 aggregate principal amount of the notes was validly surrendered. The bank served as the paying agent of the transaction that expired on June 12, 2025. Bilibili, an iconic brand and leading video community for young generations in China, has accepted all the surrendered notes for repurchase. The company has also forwarded cash in payment to the paying agent for distribution to applicable holders.
Bilibili Inc. (NASDAQ:BILI) is a Chinese online entertainment that offers a video-sharing platform targeting young people. It provides a wide array of content, including user-generated videos, live streaming, and mobile games, strongly emphasizing anime, comics, and games (ACG).
5. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 19
Goldman Sachs Equity Stake: $25.29 Million
XPeng Inc. (NYSE:XPEV) is one of Goldman Sachs’ top Chinese stock picks. On June 17, Goldman Sachs upgraded the stock to a ‘Buy’ from a ‘Neutral.’ It also hiked the price target from $18.60 to $24. The upgrade is in response to significant strategic improvements at the Chinese electric vehicle manufacturer.
According to the research firm Xpeng, it has conducted significant organizational restructuring, supply chain optimization, and cost reductions. The investment bank is also impressed by the company stepping up model launches.
Goldman Sachs expects the strategic improvements to transform Xpeng’s product cost structure and strengthen its competitive edge in the electric vehicle market. The investment bank also projects sustainable sales volume growth due to the improvements. The remarks come as XPeng strengthens its position in the Chinese electric vehicle market. Using platform improvement initiatives, it’s maintaining its position against domestic and international rivals.
XPeng Inc. (NYSE:XPEV) is a Chinese company that designs, develops, manufactures, and markets Smart Electric Vehicles (Smart EVs). It integrates advanced technologies like internet connectivity, AI, and driver-assistance systems into vehicles.
4. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 46
Goldman Sachs Equity Stake: $93.55 Million
Trip.com Group Limited (NASDAQ:TCOM) is one of Goldman Sachs’ top Chinese stock picks. On June 17, Jefferies reiterated a ‘Buy’ rating on the stock and an $80 price target. The bullish stance is in response to the company announcing a share repurchase agreement with MakeMyTrip.
Under the terms of the agreement, Trip.com is to sell a portion of Class B ordinary shares back to MakeMyTrip for cancellation. According to Jefferies, the transaction will result in Trip.com’s holdings in MakeMyTrip decreasing to about 20% on the deal’s completion. Following the transaction, Trip.com will become MakeMyTrip’s largest minority shareholder.
Jefferies expects the company to use net proceeds from the transaction to finance overseas operations and meet debt obligations. Part of the funds should also fund share buybacks. The research firm also expects the transaction to allow Trip.com to monetize investment value while optimizing its portfolio and enhancing shareholder value.
Trip.com Group Limited (NASDAQ:TCOM) is a travel service provider that offers a wide range of travel products and services. It provides a “one-stop” travel service, connecting travelers to the world and each other through its platform.
3. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 66
Goldman Sachs Equity Stake: $132.62 Million
JD.com, Inc. (NASDAQ:JD) is one of Goldman Sachs’ top Chinese stock picks. On June 18, JD Logistics, the logistics arm of Chinese e-commerce giant JD.com, announced the launch of JoyExpress in Saudi Arabia—its first direct-to-consumer express delivery service outside China. This milestone marks a key step in JD.com’s global logistics expansion.
JoyExpress is to offer delivery services as fast as the same day in Saudi Arabia, affirming JD.com’s push for growth on the international scene. Expansion abroad comes as the company faces stiff competition back at home. In addition, Chinese consumer confidence has dropped significantly amid wage growth concerns.
The company’s visionary leader, Richard Liu, has already emphasized the need for international expansion to safeguard the company’s future growth.
“We have been working in Europe for three years, and the logistics infrastructure there is now basically in place. However, it’s still not enough,” he said, according to local media reports.
By leveraging JD.com’s robust logistic network and tapping innovative ventures like food delivery, Liu hopes to challenge industry leaders across various sectors. The plan is to enhance its competitive edge by offering enticing incentives and attractive delivery benefits.
JD.com, Inc. (NASDAQ:JD) is a major Chinese tech and service company operating through JD Retail, JD Logistics, and New Businesses, offering a broad range of products and services—from consumer goods to healthcare. It supports third-party merchants with marketplace tools, provides omni-channel and online healthcare solutions, and delivers advanced logistics and supply chain services through its robust infrastructure.
2. Tencent Music Entertainment Group (NYSE:TME)
Number of Hedge Fund Holders: 23
Goldman Sachs Equity Stake: 138.09 Million
Tencent Music Entertainment Group (NYSE:TME) is one of Goldman Sachs’ top Chinese stock picks. On June 17, Macquarie analyst Ellie Jiang raised his stock price target to $26.20 from $17.10, reiterating an ‘Outperform’ rating.
The analyst’s bullish stance comes amid the expectation that Tencent Music Entertainment has what it takes to build a unique presence from content creation to entertainment consumption. The analyst also expects recent mergers and acquisitions to be value accretive to help drive music revenue momentum.
Tencent Music Entertainment Group (NYSE:TME) operates online music and audio entertainment platforms focused on providing users with diverse and engaging music experiences. It offers music streaming, online karaoke, live streaming, and long-form audio services through popular apps like QQ Music, Kugou Music, Kuwo Music, and WeSing.
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 125
Goldman Sachs Equity Stake: $1.36 Billion
Alibaba Group Holding Limited (NYSE:BABA) is one of Goldman Sachs’ top Chinese stock picks. On June 18, reports emerged indicating that one of the artificial intelligence startups the tech giant backs is planning to go public. MiniMax is a Shanghai-based AI startup that has already hired financial advisers for an IPO. It plans to go public this year in a deal that could value it at $3 billion.
The IPO would allow people to invest in a new generation firm advancing AI technology. The Alibaba-backed startup has already released an A1 reasoning model called M1 that is less resource-consuming than DeepSeek’s latest model. The Chinese startup has also upgraded a text-to-video model, integrated into its video editor, Hailuo AI.
MiniMax raised $600 million in a financing round valued at $2.5 billion last year. Alibaba was one of the companies that led the $600 million financing round. Tencent is another tech giant that has also invested in MiniMax.
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese technology company focusing on e-commerce, retail, the Internet, and technology. It facilitates business-to-business (B2B) sales through platforms like Alibaba.com, connecting suppliers with businesses worldwide. It also offers various digital services, including cloud computing, logistics, and digital media.
While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, 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 BABA and that has 100x upside potential, check out our report about the cheapest AI stock.
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