Chinese stocks listed in the US are set to rebound after China made some concessions on audits during the weekend. Indeed, tech firms listed in the Hang Seng jumped sharply on Monday morning. In a statement during the weekend, the China Securities Regulatory Commission said that it would tweak its confidentiality laws that prevented overseas-listed firms from providing some information to regulators. Here are the most oversold China stocks to buy.
Alibaba (NYSE: BABA) is a leading Chinese e-commerce company that has become one of the cheapest. In the past few years, several factors have helped push its total market cap to less than $400 billion. In contrast, Amazon, its biggest global competitor has become a mega-cap company valued at over $1.7 trillion.
Alibaba stock price is set to rebound if delisting fears fade. Indeed, the stock rose by more than 5% in Hong Kong on Monday morning. At the same time, the company’s management has made some measures to boost its stock price. For example, it has announced a $25 billion buyback plan on top of the existing one. Therefore, there is a likelihood that the BABA share price will keep rising,
Baidu (NASDAQ: BIDU) is another Chinese stock that has been under intense pressure in the past few months. The stock has crashed by more than 60% from its highest point in 2021, bringing its total market cap to more than $49 billion.
Baidu has lagged even though its business is more insulated from external factors. Besides, it generates most of its revenue in China, a market where it has the leading market share. In addition to delisting fears, its stock has dropped because of China’s regulatory crackdown.
Baidu is a good China stock to invest in because of its strong market share, strong earnings, and the potential for more share repurchases this year.
JD.COM (NASDAQ: JD), commonly known as Jingdong in China, is a leading e-commerce and retail firm in China. It operates multiple businesses, with JD.com being its flagship product. The firm also owns JD Logistics, a giant operation with over 1,300 locations in China. Like other tech firms, it has also made several investments in technologies like Artificial Intelligence, Security, and AR/VR.
The JD stock price has also declined by almost 50% from its highest point in 2021. But it has also risen by about 41% from its lowest level this year. Therefore, there is a possibility that it will keep rising s delisting fears ease.
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