Top 10 Chinese stocks for 2023 according to BCS analysts
Despite the risks associated with US-China relations, the Chinese stock market continues to attract investors. BCS Investment World analysts have updated their top 10 favorite stocks on the Hong Kong market. The list includes companies such as Alibaba, Baidu, China Construction Bank, and others.
The most interesting stocks on this list are China Resources Beer and Li Auto. China Resources Beer, one of the world’s largest beer producers with a leading market share in China, has an attractive growth history in the defensive sector. Li Auto, a fast-growing electric car manufacturer with a positive free cash flow, is also a promising company.
However, it should be noted that the main risk factor for Chinese stocks is US-China relations. News of tensions between the two countries can negatively affect the Chinese stock market. Nevertheless, periodic calming of the news background allows Chinese stocks to grow.
Thus, Chinese stocks remain attractive to investors, but potential risks should be taken into account and the news situation should be monitored.
Top 10 Best Stocks in Hong Kong for 2023: Updated Rating from BCS Analysts
| Company | Growth drivers | Target price | Potential growth from price as of April 27, 2023 |
|---|---|---|---|
| Alibaba | Relaxation of anti-COVID restrictions and growth in domestic demand, share buybacks | 134 HKD | 63.8% |
| Baidu | Relaxation of anti-COVID restrictions, development of the electric vehicle segment | 177 HKD | 53.2% |
| Haier Smart Home | Advantages over competitors in the household appliances segment | 33 HKD | 38.9% |
| Zhuzhou CRRC Times Electric | Entry into the IGBT market, development of new business directions, negative net debt | 47.76 HKD | 52.1% |
| China Construction Bank | Large client base; high expected dividend yield; undervalued shares | 5.85 HKD | 11.4% |
| WH Group | Business stability; increase in pork prices; expected dividend growth | 7 HKD | 60.9% |
| WuXi Biologics | Expansion of presence in North America; strong report expected for 2023 | 82 HKD | 80% |
| Anta Sports | Leading revenue growth; best margin in the sector; potential for investment in development | 115 HKD | 19.8% |
| China Resources Beer | Good knowledge of the local market and strong sales network; strong report expected for 2023 | 73.5 HKD | 19.9% |
| Li Auto | Plans to increase production of electric vehicles; higher growth rate and positive FCF | 115 HKD | 27.9% |
Description of the Best Chinese Companies to Invest in for 2023:
- Alibaba – the world’s largest operator of online trading platforms, which not only provides services for international online trade, but also actively develops cloud technologies.
- Baidu – a company that specializes in the development of online services and products, as well as artificial intelligence, which ensures the high quality of the services provided.
- Haier Smart Home – a global leader in the home appliances market, which actively implements the latest technologies in its products, providing a high level of comfort and convenience for its customers.
- Zhuzhou CRRC Times Electric – the largest supplier of railway traction systems in China, which develops and produces electric systems and components for railways, as well as power electronics devices.
- China Construction Bank – one of the largest banks in China and the world in terms of asset size, providing a wide range of banking services and supporting large projects in various sectors of the economy.
- WH Group – the largest meat processing and food production company in China, which cares about the quality of its products and regularly implements new technologies to increase production efficiency.
- WuXi Biologics – a leading global technological platform for drug development, using modern methods and technologies to create innovative drugs.
- Anta Sports – a local leader in the sports apparel and footwear market in China, which offers a wide range of quality products that meet consumer requirements.
- China Resources Beer – a leader in beer sales in China, which aims to develop new products and improve the quality of its products, meeting high standards and consumer requirements.
- Li Auto – a company that produces premium electric vehicles, which are highly valued for their functionality, stylish design, and economy.
