China stocks have whipsawed in recent months on stimulus hopes and disappointment, along with the threat of new tariffs under President Donald Trump. Still, several stocks are showing strength.
Tesla rivals BYD and XPeng are near buy points, along with travel plays Atour Lifestyle Holdings and Trip.com as well as e-commerce giant JD.com,
Investors should pay attention to many other Chinese stocks, including e-commerce titan Alibaba, search giant Baidu, messaging and gaming giant Tencent and online entertainment concern Bilibili. Don't forget other EV makers, such as Li Auto, Nio and Zeekr, as well as smartphone giant-turned-EV maker Xiaomi. Online brokerages Futu Holdings and Up Fintech, as well as global retailer Miniso.
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. But these ETFs are prone to big gap-ups and -downs as well.
Top China Stocks To Buy Or Watch Now
| Company | Ticker | Industry Group | Composite Rating |
|---|---|---|---|
| Trip.com | TCOM | Leisure-Travel Booking | 98 |
| BYD | BYDDF | Auto Manufacturers | n.a. |
| XPeng | XPEV | Auto Manufacturers | 85 |
| JD.com | JD | Retail-Internet | n.a. |
| Atour Lifestyle | 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.
Q3 earnings rose 25% vs. a year earlier, the third straight quarter of decelerating growth, as comparisons get tougher. Revenue gained 20%, picking up from 13% in Q2. Travel seems be on the upswing globally.
Trip.com stock recently reclaimed the 50-day line and broke a downtrend with a new cup base, as well as topping a buy point from a prior base. All that offers an early entry. The traditional buy point is 77.18.
BYD Stock
The world's leading EV maker, BYD produces fully battery electric vehicles (BEVs) and plug-in hybrids (PHEVs). 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.
BYD sold a record 1,524,270 vehicles in Q4, up 61% vs. a year earlier and more than triple Tesla's total. Full-year sales jumped 41% to 4,272,145. BEV sales ran to 595,413 in Q4, roughly 100,000 more than Tesla.
A rapid expansion of models, technology and markets has fueled BYD, which is building factories in Asia, Europe and Latin America.
BYD stock has a base with 42 as the official buy point. Shares are back above the 50-day line. BYD has potential early entries at 35.83, 36.50 and 37.
The Chinese stock 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.
Tesla Near New Buy Point With Earnings Due; BYD Sets Up Too
XPeng Stock
XPeng is a Chinese EV maker. It makes only BEVs, but plans to roll out extended range EVs (EREVs), essentially a version of PHEVs, in 2025.
It competes in the modest-to-mainstream markets, competing against BYD, Zeekr, Tesla and others.
XPeng is still losing money, though losses are narrowing. Sales growth is strong and expected to skyrocket in 2025.
XPeng delivered a record 36,695 in December, up 82.4% vs. a year earlier. Deliveries were led by the new flagship P7+ sedan and small sedan Mona M03, the first vehicle from its Mona subbrand.
The Chinese startup also has an alliance with Volkswagen, providing key technology for some upcoming VW EVs.
XPeng stock is just above a 14.66 buy point from a double-bottom base. Is relative strength line is at a 52-week high on a weekly chart.
Huge Earnings Due For Rally; Three Titans Near Buy Points
JD.com Stock
JD.com is a huge e-commerce firm, second only to Alibaba in China.
Q3 earnings jumped 35% vs. a year earlier after Q2's 73%. Sales which had barely risen or fell over several quarters, picked up to 9%.
JD.com skyrocketed from late September to early October amid government stimulus hopes. But as those hopes waned, so the shares. JD.com is now working on a 31%-deep double-bottom base, with 42.73 buy point. But the stock is offering an early entry from a downward-sloping trendline.
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 rose 47% with revenue up 53%.
Shares of China stock Atour nearly doubled from early August to a 52-week high of 29.15 on Oct. 7. Shares have largely held those gains. An early December breakout quickly failed but a new base has formed right next to the old one. The buy point is 29.90. But shares are actionable after retaking the 50-day line decisively on Jan. 24.
Please follow Ed Carson on X/Twitter at @IBD_ECarson and Threads at @edcarson1971 for stock market updates and more.
