China stocks, after a brief revival, have faltered as stimulus measures have disappointed and on the threat of sweeping new tariffs under Donald Trump. Still, several stocks are showing strength.
Tesla rivals BYD and XPEV are near buy points, along with travel plays Atour Lifestyle Holdings and Trip.com, as well as messaging and gaming giant Tencent.
Investors should pay attention to many other Chinese stocks, including e-commerce titan Alibaba, JD.com, search giant Baidu, online recruitment site Kanzhun, data center play GDS Holdings, online entertainment concern Bilibili and gaming giant NetEase. Don't forget other EV makers, such as Li Auto and Nio.
Top China ETFs
Investors wary of buying an individual Chinese stock could choose ETFs such as KraneShares CSI China Internet ETF, iShares China Large-Cap ETF and Xtrackers Harvest CSI 300 China A-Shares ETF.
Chinese Stimulus
With China's economy struggling, in late September the central bank cut some key rates and lowered reserve requirements for banks. Authorities also took steps to encourage lending as well as buy property and stocks.
Those moves triggered the huge run-up in Chinese stocks. But shares have fallen back, with volatility, as fiscal stimulus measures have been relatively modest. Also, Donald Trump's election makes sweeping new U.S. tariffs on Chinese goods likely.
EV makers, including BYD, Nio and Tesla, have benefited for a few months from increased government subsidies.
Top China Stocks To Buy Or Watch Now
| Company | Ticker | Industry Group | Composite Rating |
|---|---|---|---|
| Trip.com | TCOM | Leisure-Travel Booking | 94 |
| BYD | BYDDF | Auto Manufacturers | 68 |
| XPeng | XPEV | Auto Manufacturers | 56 |
| Tencent | TCEHY | Internet-Content | n.a. |
| AtourLifestyle | ATAT | Leisure-Lodging | 98 |
Trip.com Stock
Trip.com is a China-based online travel site operator. It's benefited from a travel boom after China's long Covid restrictions were lifted in late 2022.
Trip.com earnings for the third quarter are due late on Nov. 18.
Q2 earnings jumped 42% vs. a year earlier while revenue grew 13%. Both marked the second straight quarter of decelerating growth, as comparisons get tougher. But travel seems be on the upswing globally.
Trip.com stock vaulted out of a cup base on Sept. 27. Since then, shares have forged a 17%-deep consolidation, in a base-on-base formation The buy point is 69.67. But shares have fallen back to a rising 50-day line.
BYD Stock
The world's leading EV maker, BYD produces fully battery electric vehicles (BEVs) and plug-in hybrids (PHEV). It's also one of the world's largest battery makers.
BYD earnings rose 16% in Q3 vs. a year earlier. Revenue grew 29%, accelerating from 26% in Q2 and Q1's 1% decline. Notably, BYD revenue topped Tesla's for the first time.
Q4 revenue growth should accelerate sharply.
In BYD sold a record 1,134,892 vehicles, up 37.3% vs. a year earlier and 7.6% vs. Q2's 986,720. PHEV sales soared 75.6% vs. a year before to 685,830. BEV passenger sales came in at 443,426, up 2.7% vs. a year earlier and 4.1% vs. Q2. BYD is slightly behind Tesla in BEV sales.
In October, BYD sold 502,657 EVs, up 66.5% vs. a year earlier and 19.8% from September's prior record of 419,166. BYD has been production constrained, but it made a record 536,134 vehicles in the month.
A rapid expansion of models, technology and markets has fueled BYD, which is building factories in Asia, Europe and Latin America.
In Q4, BYD seems on track to sell well over 1.5 million EVs, easily clearing a full-year target of four million vehicles. BYD should comfortably top Tesla in BEV sales, even as it focuses on PHEVs.
In early October, BYD topped the official 36.27 buy point, and quickly hit a two-year high of 42 before pulling back. Shares now appear to be forging a new base, which could be viewed as a double-bottom with a 39 buy point. But shares are currently below their 50-day line.
BYD is Hong Kong listed and trades over the counter in the U.S., so its U.S. stock chart shows lots of mini gap-ups and downs.
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XPeng Stock
XPeng is a Chinese EV maker that makes only BEVs, but is going to branch out into extended range electric vehicles (EREVs), essentially a form of PHEVs.
XPeng has been a mainstream EV maker, but has recently launched a new, more-affordable Mona subbrand. The Mona M03 has been a strong seller since its launch a few months ago. Meanwhile, XPeng has just begun deliveries of its P7i sedan, which got huge initial orders.
continuing to stick with BEV-only models. Traditionally a premium EV maker, Nio recently launched the mainstream Onvo brand. The Onvo L60 is a Model Y rival with higher specs at a cheaper price. Nio will launch its Firefly sub-brand in late December, targeting the affordable market, dominated by BYD.
Monthly EV sales have ramped for eight straight months, setting records in September and October. The expectation is that sales will continue ramping up into year-end.
XPeng will report Q3 earnings on Nov. 19, with continued losses but strong sequential revenue gains. The EV maker will also likely give Q4 guidance, including for EV deliveries.
China stock XPeng hit a two-year low in August, but have nearly doubled since then. Shares cleared a short consolidation on Nov. 7, but have fallen back, finding support at the 21-day line.
Tencent Stock
Tencent is a massive messaging and gaming giant. Its WeChat super app is the envy of the world. Strong gaming demand has fueled a big surge in earnings.
Q3 earnings leapt 42% vs. a year earlier, a strong pace but snapping a seven-quarter string of accelerating growth. Revenue growth has picked up for the last two quarters, to 12%.
Tencent stock broke out of a long flat base in late September. That flat base for the China stock could be viewed as a handle to a mammoth consolidation going back to January 2023.
Shares hit 61.60 but pulled back below the 21-day and 50-day lines, essentially back to the prior consolidation.
Tencent is Hong Kong listed and trades over the counter in the U.S., so its U.S. stock chart shows lots of mini gap-ups and downs.
Atour Lifestyle Holdings
Atour Lifestyle owns and manages a hotel chain in China. As of June 30, there were 1,412 hotels across Atour's hotel network, with 123 new openings in the second quarter, a quarterly record. The company says it's the largest upper-midscale hotel chain in China in terms of rooms.
Chinese travel roared back in 2023 as Covid restrictions were lifted.
Atour earnings for Q3 are due on Nov. 19. Q2 earnings rose 31% while revenue grew 64%, though growth is decelerating as comparisons get tougher.
Shares of China stock Atour nearly doubled from early August to a 52-week high of 29.15. Shares have pulled back, but only given up a fraction of those gains, generally trading around the 21-day line and holding the 10-week.
ATAT stock has a new 15%-deep consolidation with a 29.15 buy point. Investors could view the base as a handle to mammoth consolidation going back to the January 2023 record high.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
