Top Chinese stocks to buy and watch right now: 5 stocks for November

China is the world’s No. 2 economy and home to dozens of companies trading in the US. JD. com (J.D.), pinduo (PDD), Canadian Solar (CSIQ), Daqo New Energy (DQ) and Trip.com (TCOM) are Chinese stocks worth watching or buying.




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It’s been a rough few years for Chinese equities. The Covid pandemic and Beijing’s zero-Covid policy have dealt a blow to the economy. Meanwhile, regulatory crackdowns versus technology and data-centric companies such as alibaba (BABA), tencent (TCEHY) and NetEase (NTES) were a major headwind. Trade tensions in the US are a concern, with the White House banning shipments of key chip technology to China, along with tariffs and other restrictions on Chinese goods.

However, the tech crackdown appears to have eased as China rolls back tight Covid restrictions. As lockdowns and other severe measures come to an end, a huge wave or waves of infections are likely to occur in the coming weeks

But for now, Chinese stocks are recovering. Along with price gains, volume has picked up, further evidence of a change of character. In addition to China-specific bullishness, there is a confirmed stock market rally that has been underway for the past few weeks.

While the current top Chinese stocks to buy or watch are dominated by e-commerce and solar, EV manufacturers such as Nio (NIO), li car (LI) and global giant BYD (BYDDF). All take over Tesla (TSLA) in the world’s largest EV market, with BYD racing ahead of Tesla in terms of total sales.

Tencent, NetEase and Baidu (BIDU) are other internet giants to follow.

Top China stocks to buy or watch

Business Ticker Industry Group Composite review
JD. com JD Retail Internet 79
Daqo New Energy DQ Energy-Solar 90
Canadian Solar CSIQ Energy-Solar 93
Trip.com TCOM Book leisure travel 78
pinduo PDD Retail Internet 99

JD.com share

JD.com is China’s No. 2 e-commerce company behind only Alibaba.

It has been consistently profitable for years, with annual growth since 2018. Earnings growth has accelerated over the past two quarters, rising 80% in the third quarter. But sales growth has slowed for six consecutive quarters, to just 1%, amid Covid closures and related disruptions.

A crackdown on major internet platforms, though it fell harder on Alibaba and Tencent, still weighed on JD.com’s stock.

JD.com stock peaked at 108.29 in February 2021 and dropped to a Covid low of 33.17 on October 24, 2022. Since then, shares have rallied, making the 50 days in early November, and it’s back above the 200-day limit for the first time in almost a year. Stocks are now consolidating at that important long-term average. But there is no clear buying point.

What it comes down to: JD.com stock is not a bargain.


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Daqo New Energy stock

Daqo New Energy is a leading low cost maker of high purity polysilicon for the solar photovoltaic industry.

Daqo earnings increased from 64 cents per share in 2019 to $9.89 in 2021 and an estimated $27.27 in 2022. Earnings per share will decline to $21.02 in 2023.

Daqo’s earnings growth has slowed from 524% in Q1 to 167% in Q2 and just 9% in Q3. Sales growth slowed from 400% to 182% and a still strong 108% in the third quarter.

There is huge demand for solar power in China and globally, with generous new tax breaks in the US. But the US also imposes hefty tariffs on Chinese solar products. The US government has accused some Chinese companies of illegally evading tariffs by traveling through other Asian countries.

DQ stock peaked at 77.18 on July 7, but collapsed in September, eventually bottoming out at 41.03 on October 24. But Daqo shares have fallen below those levels and are not far from recent lows.

What it comes down to: DQ shares are not a buy.


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Canadian solar supply

Although Canadian Solar is technically based in Ontario, Canada, it is largely a Chinese company. It makes and installs solar panels and develops and builds solar power plants.

Canadian Solar’s earnings per share fell in 2019, 2020 and 2021, but are expected to more than double in 2022, with earnings of 68% in 2023. Earnings per share increased 494% and 167% in the last two quarters .

The CSIQ stock reached a 52-week high of 47.69 on August 18, but then dropped to 27.38 on October 24.

What it comes down to: CSIQ shares are not a buy.

Pinduoduo stock

Pinduoduo is the number 3 e-commerce player in China, after Alibaba and JD.com. But it has outperformed its larger rivals in recent months, with its focus on bargains appealing to consumers in a tough economy.

Sales growth has accelerated over the past three quarters, from 5% to 50%. Pinduoduo’s revenue increased 256% in the third quarter, reported on Nov. 28.

PDD shares peaked at 212.60 in February 2021 and then crashed to 23.21 on March 15, 2022. But since then, Pinduoduo stock has moved higher in a volatile fashion.

PDD shares rose from a 47% deep base after gains on Nov. 28, rising 31% for the week to a 52-week high. Shares continued to rise before modestly retreating.

What it comes down to: PDD shares are not a buy.


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Trip.com share

Trip.com is a China-based online travel agency operating under various brands and in many countries. China is easing travel quarantine rules with signs of wider Covid policy changes seen as a boon for travel in China.

Trip.com has a profitable history, although it reported losses in Q1 and Q2, with sales down 34% from a year earlier in the second quarter.

Trip.com reported a 69% third quarter profit increase on Dec. 14. Sales grew 16.5%, the best profit in five quarters.

Profits rise in 2023.

TCOM stock hit a nine-year low of 14.29 in March. Since then, Trip.com’s stock has bounced back. A breakout attempt in late August failed, with stocks retreating to 19.25. But then it bounced back volatile, with some big volume gains. TCOM stocks recovered from the 50-day line on Nov. 28 and continued to run, eventually clearing resistance around 30-31 on Nov. 30.

The shares have now been extended.

What it comes down to: TCOM shares are not a buy.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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