China ranks second in the world – directly after the United States – in the list of the most powerful economic countries, with the country’s gross domestic product last year amounting to about 13.4 trillion US dollars, equivalent to 16.82% of the global GDP. This is conclusive evidence of the market value of Chinese companies in various industrial sectors.
Based on the foregoing, finding shares of Chinese companies in the US and global market is a common goal among millions of traders around the world, but the most important question remains – as usual – what are the best of those shares, from which the hoped-for profits can be achieved, and the following answers the Yaqin website “.
The best Chinese stocks to invest in
China managed to achieve an economic miracle, as described by many experts and financial analysts. It was able to advance in all industrial sectors, and its exports invaded major markets around the world. This contributed to making the best options for Chinese companies’ shares more numerous and diversified to a large extent.
Chinese stocks have a wide spread, as some of them chose to subscribe to the American stock exchange – such as the New York Stock Exchange (NYSE) – and many other American and global markets, in addition to the Chinese and Asian stock exchanges, led by the Hong Kong Stock Exchange (SEHK) and the Shanghai Stock Exchange (SEE), the following is a group One of the best Chinese stocks that are most targeted by traders and investors.
- Financial Market: NYSE
- Sector: electric vehicles
- Market capitalization: 20.92 billion US dollars
Nio Inc. was founded in 2014 and within a short period of time it was seen as one of the most prominent competitors to the American company Tesla, and then its stock was classified as one of the most prominent shares of electric car companies that have witnessed great demand in recent years thanks to the positive outlook for the future of this promising sector.
Neo company faced several obstacles recently, starting with the outbreak of the Corona pandemic and then the crisis of lack of electronic chips, but it was able to withstand and overcome the matter, its revenues jumped by 126% during the fourth quarter of last year 2021, many analysts consider Neo’s stock as one of the best options for companies’ stocks Chinese market in the US market, as they expect it to rise during the year 2022 and 2023, especially since the company has already announced its ambitious future projects, foremost of which is the development of its new car equipped with augmented reality technology.
- Financial Market: NASDAQ
- Sector: Artificial Intelligence
- Market capitalization: 37.11 billion US dollars
Baidu represents one of the largest companies specialized in the field of Internet services and artificial intelligence. It was among the shares of Chinese companies that witnessed a great recovery in 2020, despite the outbreak of the global Corona epidemic, due to several factors, most notably the company’s acquisition of nearly 75% of the operations The search engine in China, which in turn represents the largest Internet market in the world.
Baidu’s stock is a good choice for those wishing to trade or invest in shares, according to the estimation of many analysts, as the stock is expected to witness a high rise over the next few years. Nio Corporation and global companies such as Tesla and others.
Dako New Energy Corp
- Financial Market: NYSE
- Sector: Solar Energy Systems
- Market capitalization: 3 billion US dollars
The results of technical analyzes and reading the stock chart indicate that the stock of Dako is one of the good stock options for Chinese companies. The company has naturally benefited from the global trend towards relying on clean energy, given that this entity – which includes three subsidiaries – focuses its activity on the production and marketing of photovoltaic units. It is also active in the production of monocrystalline or polycrystalline silicon for use in solar energy systems.
Many hopes are placed on Daqo’s stock and it is seen as one of the best options available to those looking to invest in long-term stocks, as the fourth and final phase of the expansion of the Shanghai facility is scheduled to be completed this year, according to which its production capacity will reach 105,000 metric tons per year of Silicon, this will have a positive impact on total annual returns and consequently earnings per share.
JD Corporation. JD.Com
- Financial Market: HKG
- Sector: e-commerce
- Market capital: 650.10 billion Hong Kong dollars.
The stock of JD Corporation. Com has always been among the best Chinese stocks for trading and investment, due to it being the stock of one of the giants of e-commerce and online selling in China and the world. The history of the site’s establishment dates back to 1998 under the name 360buy, while it was given its new identity, which it is known globally today, starting in 2007.
JD enjoys. Com with a great degree of stability due to its high market value and the expansion of its business. The company has previously been included in the Fortune Global 500 ranking of the 500 most profitable companies around the world. These and other factors contributed to it being classified as one of the best stock options available.
Li Auto Company
- Financial Market: HKG
- Sector: electric vehicles
- Market capitalization: 175.39 billion Hong Kong dollars.
Li Auto was established in 2015 and within a few years it managed to become one of the most prominent competitors in the production and development sector of electric cars. This was achieved through the production of its sports car, which was very popular and recorded high sales rates. In the fourth quarter, the annual basis increased by 156%, achieving the equivalent of about 1.67 billion US dollars.
The stock of Li Auto has gone through some instability recently, but it has not lost the interest of investors in it. Some analysts even see it as a distinguished option for those who want to invest in stocks, especially as the company plans to release its second car soon, which will have a positive impact on its profits and consequently performance. its shares in the stock exchange.
The most prominent shares of Chinese companies for trading
We have already mentioned that China is one of the largest economic powers in the world, and therefore its stock options are more diversified than can be counted. The following is another group of shares of Chinese companies listed in the financial markets, which may represent a golden investment opportunity for many.
|company||Activity||market capitalization||money market|
|Alibaba||E-Commerce||1.80 Trillion Hong Kong Dollars||HKG|
|VIPshop||E-Commerce||4.88 billion US dollars||NYSE|
|BYD||Auto industry||625.44 billion yuan||SH|
|JinkoSolar||Renewable Energy / Solar Panels||2.35 billion USD||NYSE|
|New Oriental Education||Education sector||1.67 billion US dollars||NYSE|
|NetEase||Internet services||469.59 billion Hong Kong dollars||HKG|
|Futu Holdings||broker||4.32 billion USD||NASDAQ|
How to access the shares of Chinese companies
After reviewing the most prominent and best shares of Chinese companies in the global market, it is time to learn how to access them and reap profits through their trading. The good news is that the global financial markets have become wide open to all. Any of the financial instruments listed in them can be traded quite easily by following the following:
- Starting the process of checking the licenses of trading companies to ensure the selection of a safe and reliable company.
- Opening a real trading account with the company is done by following the simple registration steps.
- Fund the trading account by depositing the value of the initial capital allocated to the investment.
- Relying on technical analysis tools in evaluating the shares of targeted Chinese companies.
- Access to the digital trading platform and search for stocks by their code.
- Start opening deals on the target stocks and trading them by buying and selling.
The best Chinese stock trading companies
Access to the American market and global markets, including the Chinese stock exchanges themselves, has become easy. This is achieved from anywhere in the world by opening a trading account through one of the trading companies that provide this service, but the most important thing is to be able to choose the licensed and legally regulated companies that can complete transactions Trade through it with confidence and security.
Here, Yaqeen website reviews a group of the best licensed stock trading companies that operate under the supervision of the most important and prominent financial supervisory authorities in the world.
Risks of trading the shares of Chinese companies in the US market
Money market risks take very many forms and can result from many factors, including political events and economic laws, so since we are talking about the best stocks of Chinese companies, we cannot lose sight of the sharp volatility that many of them have witnessed recently, which is rooted in factors Political in the first place, represented by the attack of the Chinese Communist Party on the capitalism of companies in the technology sector, which is growing rapidly in the country.
The business of Chinese technology companies was not affected by the attack on the Communist Party, but their shares were affected, due to the fact that a large number of shareholders were afraid of the results of the intensification of the conflict between the two parties and then sold their shares. It is known that the rates of supply and demand are the most and fastest factor affecting the various factors affecting The movement of the stock price in general, which is why some Chinese stocks witnessed a relative decline, and many of them managed to correct the path and re-rise.
It should be noted that this situation appears in its entirety – at first glance – to be negative, but in fact it was beneficial to those who follow long-term investment strategies, as they benefited from buying the shares of these giant companies when their value fell, and they are likely to achieve high returns through them in light of the given data. The current forecast suggests that most Chinese stocks will rise over the following years.
Frequently asked questions about the best Chinese stocks in the US and global markets for trading and profit
Which is better US stocks or Chinese stocks?
It is difficult to find a stable and accurate answer to this question, despite its popularity and frequency, because determining the best stocks for investment is based on many factors other than the nationality of the companies. Determined on scientific and informational bases. Based on this, it is not possible to favor either of the two classes of shares over the other, but the whole matter is returned to the trader’s vision and expectations based on his deep analyzes of the market as a whole and the movement of the target stock in particular. Experts are always advised to make sure that the investment portfolio is more diversified, by targeting Shares belonging to different countries and sectors, as this is one of the ways to hedge against risks, and therefore there is nothing to prevent the combination of American and Chinese stocks together.
What is the right capital to start trading Chinese stocks?
One of the most prominent advantages of online stock trading is that it has made access to the stock market available to everyone, including owners of simple or medium capital. If your choice is to trade the shares of Chinese companies through a digital broker, you can start with relatively small amounts, as most brokers offer the possibility Open trading accounts with deposits of an average of 50: 200 USD.