1. Alibaba Group Holding Ltd (BABA)
One of the most recognizable names on the Chinese stock market, Alibaba Group, is definitely worth a look. This Chinese multinational conglomerate holdings company specializes in various sectors including e-commerce, technology, and entertainment; and is a trailblazer in many respects.
Alibaba functions akin to Amazon, offering a myriad of products for sale on its platform, thus making it a crucial part of the online retail space. Not stopping there, the company has its digital pawprint in cloud computing through Alibaba Cloud, the largest high-end cloud service provider in China, and a major contender on the global stage.
Furthermore, Alibaba Group’s business contains digital media and entertainment, with online platforms that have millions of users across China. For instance, Youku, one of China’s main streaming services, is operated by Alibaba, alongside its music streaming platform, Xiami Music. With such strong positioning in the country’s digital landscape, Alibaba’s stock is a trustworthy and lucrative option for investors.
2. JD.com (JD)
JD.com is another e-commerce giant and Alibaba’s main competitor in the Chinese market. What sets JD.com apart is its logistics network, often described as a well-oiled machine. This advanced, in-house logistics network has powered enormous growth rates for JD.com in recent years, and played a crucial role in providing supplies during COVID-19 lockdown periods across the country.
Beyond retail, JD.com also has its tentacles in finance and technology sectors. JD Digits, the company’s fintech arm, has been involved in creating innovations in the fields of artificial intelligence, big data, and Internet of things. Looking at the company’s ability to diversify its operations coupled with robust logistics, the longevity and potential growth of JD.com’s stock certainly deserve consideration.
3. Baidu Inc. (BIDU)
Baidu, often referred to as China’s Google, is the leading search engine in China, taking control of more than 70% of the Chinese search market. Its success is largely attributed to Google’s absence in China due to censorship issues, placing Baidu in a profitable position.
Beyond its core business, Baidu is strongly involved in developing AI technology and autonomous driving. Their AI technology has expanded in multiple sectors including cloud services, intelligent driving, and other smart devices.
In the area of autonomous driving, Baidu’s Apollo project is considered a world leader. They’re working towards creating a fully autonomous driving system which has gained significant attention from investors worldwide. With its dominant position in the Chinese internet search market and proactive activities in AI and autonomous driving, Baidu’s stock holds immense potential.
4. Tencent Holdings Ltd (TCEHY)
Tencent, a leading name in the internet-based technology and cultural enterprise sector in China, holds substantial value for investors. It covers a broad spectrum of services including social networks, music, web portals, e-commerce, mobile games, and multiplayer online games.
Tencent’s subsidiary, Tencent Music Entertainment, is akin to the Spotify of China, whilst the mobile chat service, WeChat, boasts over a billion active monthly users. Notably, Tencent is the world’s largest gaming company, which owns the majority share in Riot Games, the developers of the popular League of Legends game.
Tencent is also actively involved in fintech services and cloud services, which are two rapidly growing business areas in the Chinese market. Given its extensive reach, curiosity in innovation, and firm position in the Chinese market, Tencent’s stock showcases valuable opty for both short term benefits and long term growth.
