3 top Chinese tech stocks to watch this week

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Are the Chinese tech stocks with the greatest potential?

The past two years have not been good for Chinese tech stocks on the stock market. From regulatory repression in their home country to fears of delisting from US stock exchanges, it’s no surprise that many investors have looked elsewhere. But things could change. In fact, there has been a slight rebound among Chinese tech stocks lately. Notably, Chinese Vice Premier Liu He said last month that the government would take steps to stimulate the economy and introduce market-friendly policies.

Elsewhere, recent reports suggest that regulators in Beijing appear to be scrambling to give US authorities full access to audits of Chinese companies. Now, that access could be as early as the middle of this year. This would allow Chinese stocks listed in the United States to continue to be publicly traded in the United States, allaying delisting fears among investors. If this were to materialize, it could be a huge boost for Chinese equities. After all, some investors may argue that the downward spiral of most Chinese tech stocks over the years is slightly exaggerated.

As a result, the tastes of bilibili (NASDAQ: BILI) and Ali Baba (NYSE: BABA) seem to be picking up. BILI and BABA shares are up over 37% and 19% respectively in the past month. That said, questions will remain whether this is sustainable in the long term. One thing is certain, investors are now showing more confidence in these stocks. So here are some of the top Chinese tech stocks on the stock market today that might be of interest to you.

Chinese tech stocks to buy [Or Avoid] Today

Pinduo-duo

Pinduo-duo is a technology giant specializing in the e-commerce sector. The Company’s platform offers value-for-money merchandise and interactive shopping options. The platform is designed to look like a virtual bazaar of a wide range of products. Consumers could find various products ranging from clothing and electronics to food and beverages. PDD stock has had an impressive run lately. The stock is up more than 25% in the past month.

In March, Pinduoduo announced its fourth quarter financial results and business updates. By the end of 2021, the company had connected over 16 million farmers to its 868.7 million buyers in China. At scale, there were a total of 61 billion orders placed on the platform in 2021. This represents a 59% year-over-year increase, driven by increased agricultural orders. In addition to this, it has also intensified its agricultural modernization efforts through various initiatives. It is about helping farmers expand market access while motivating the younger generation to get into farming.

Financially, the company also fired on all cylinders. For starters, gross merchandise value for fiscal year 2021 was $383 billion, a 46% year-over-year increase. Meanwhile, revenue for the year was $14.7 billion, an increase of 58% over the prior year. Going forward, the company is making a strategic shift from sales and marketing to research and development. Pinduoduo believes that long-term investments are necessary for its growth in agriculture. Given these factors, could PDD stocks be a buy right now?

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JD.com

best tech stocks of all time (JD stock)

Another top Chinese stock worth noting would be JD.com. Similar to Pinduoduo, the company operates an e-commerce platform. JD’s two segments are retail and new ventures. The JD Retail segment includes online retail, online marketplace and marketing services in China. Meanwhile, the New Ventures segment is responsible for logistics services provided to third parties, technology initiatives and asset management services to logistics real estate investors.

Last month, the company’s JD Logistics announced that it had reached a series of agreements for the proposed acquisition of Deppon Logistics. For the uninitiated, Deppon is an integrated, customer-centric logistics company that offers a wide range of solutions in China. This includes trucking, delivery services, full truckload and warehousing management. Safely, this investment looks like an investment for the future against the backdrop of the growing role of e-commerce in retail.

Basically, the company continues to perform steadily. In its fourth quarter, the Chinese internet giant reported total revenue of $43.3 billion, a 26% year-over-year increase. Meanwhile, its adjusted earnings per share were $0.35, beating analysts’ expectations of $0.24. Overall, it looks like the sentiment around the company is improving, and for good reason. With that in mind, should you consider investing in JD stocks?

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iQIYI

IQ Stock

Finally, we will look at the online entertainment service company, iQIYI. Basically, the company provides authentic video content. This includes movies, TV series, variety shows, and anime. Besides that, it also has an entertainment-based social media platform, iQIYI Paopao. The platform is for fans who want to follow and interact with celebrities and the entertainment community. Impressively, IQ stock has seen a steady rise, rising over 30% in the past month.

Last week, the company announced the launch of its iQIYI channel on Roku Streaming Players and Roku TV models. Users in the United States and Canada will have access to iQIYI content by simply logging into the iQIYI channel on their Roku devices. Additionally, the company will offer free viewing of selected episodes of dramas. This would allow users to get a glimpse of the content that piques their interest.

Additionally, iQIYI also kicked off April by announcing the upgrade of its collaboration model for online movie distribution. The new templates are Cloud Cinema Premiere and Subscription Premiere. For one, Cloud Cinema Premiere will generate revenue from both the Premium on Demand and Subscription Video on Demand streaming models. On the other hand, Subscription Premiere model will share its revenue with movie producers. However, it is determined solely by users’ viewing time, rather than separate fee category classifications. To say the least, the upgraded models will help launch a Direct-to-Consumer model in the Chinese film and TV industry. All things considered, do you think IQ stocks will have more leeway?

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Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]



Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]

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