From Nasdaq:

Investors are finding Chinese technology stocks more compelling than ever, with current valuations and bullish catalysts making them appealing. Many investors have sworn off the area due to weak economy and geopolitical risk, making it even more appealing for potential investors.

Tencent Holdings, a major player in social media, gaming and entertainment, is buying back shares at a rapid pace and has been given a Zacks Rank #1 (Strong Buy) rating.

PDD Holdings Group, known as Pinduoduo, is growing its annual sales at a rapid pace and has been given a Zacks Rank #1 (Strong Buy) rating as well. The stock is not too expensive, especially considering the high growth rates.

NetEase, with a prominent presence in online gaming and e-commerce, has also been given a Zacks Rank #2 (Buy) rating and is projecting sales growth at 11% YoY to $16.2 billion. The company is considered undervalued based on growth.

Alibaba’s businesses include retail, e-commerce, financial services, digital entertainment and cloud computing. The stock has been trending lower but offers an appealing valuation with a one year forward earnings multiple of 8.8x and a dividend yield of 1.4%. It is trading well below its industry average.

While there is additional risk in investing in Chinese equities, the compelling proposition offered by some of these stocks cannot be denied. These stocks are a great starting point for investors looking to add exposure to Chinese technology stocks.



Read more: Contrarian Outlook: The Bull Case for Top Ranked Chinese Tech Stocks