China has been in the headlines for quite some time now, largely due to the fact that the East Asian nation’s economy has suffered a string of declines in 2018. The country’s trade dispute with the United States has created a global economic tension. China’s GDP growth and retail sales growth suffered a 30-year low, and 15-year low, respectively. Additionally, a slowdown in economic activity has affected many Chinese stocks.
You might think that investing in Chinese stocks now would be a bad idea, but in this article, we discuss the 3 Chinese stocks that will weather the storm this year.
Alibaba
Many stocks from China have suffered huge losses in 2018, and Alibaba, the King of Chinese stocks, was not spared from the market bloodbath. Alibaba at one point has fallen by 40% from its high point in January.
But the Jack Ma-led e-commerce giant is showing signs of life. Alibaba’s stock has strongly rallied in 2019, rising over 30% so far, thanks to optimism surrounding the U.S.-China trade talks. Moreover, the Chinese digital economy’s continuous growth will lift Alibaba’s stock higher.
The economic outlook of China looks bright and this will push BABA stock steadily higher all through the year.
Tencent
A slowdown in China’s economic activity and increased traction in new game releases have resulted in a 32 percent decline in Tencent’s fourth-quarter profit – the largest since its IPO in 2004. But analysts insisted that the internet giant’s stock is still worth buying. According to them, Tencent’s investments into the industrial internet space pose growth potential. Additionally, China’s economy is looking to rebound in 2019 which can potentially move Tencent’s stock higher.
Ctrip
A Chinese online travel agency, Ctrip joins Alibaba and Tencent as one of the most sought-after Chinese stocks. Although the company had a rough 2018 when its stock plunged nearly 60% off 2017 highs, China’s great economic outlook this year should help Ctrip retain a steady revenue growth. A healthy economy means Chinese people will want to travel more. Thus, travel demand will go up.
