From Nasdaq:

Chinese tech stocks, including Tencent Holdings, PDD Holdings, NetEase, and Alibaba, are presenting a bullish outlook amidst concerns about the weak Chinese economy and geopolitical risk. These stocks are perceived as undervalued due to steep declines in the China Internet ETF. Additionally, Tencent Holdings has demonstrated strong commitment to return cash to shareholders, with a Zacks Rank #1 (Strong Buy) rating.

PDD Holdings Group, also known as Pinduoduo, is an e-commerce company threatening Alibaba’s dominance. Sales growth is projected to be 75% this year, with earnings growth expected to be 38.6%.

NetEase is a leading online gaming and e-commerce company in China. Its strong sales growth and upward trending earnings estimates give it a Zacks Rank #2 (Buy) rating, indicating undervaluation based on growth.

Alibaba, a leader in retail, e-commerce, and financial services in China, offers a compelling investment due to its undervalued status and consistent commitment to returning cash to shareholders. With a Zacks Rank #3 (Hold) rating, sales and earnings are expected to grow 5.2% and 15% YoY in FY24, respectively.

For investors looking to add exposure to Chinese technology stocks, Tencent Holdings, PDD Holdings, NetEase, and Alibaba are appealing opportunities. Despite the risks associated with investing in Chinese equities, the attractive valuations and growth potential of these stocks provide a compelling proposition.



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