According to some analysts, Chinese stocks have not yet reached the bottom, but some sectors could see a surprising rise once economic growth picks up again.
Is it worth investing in China after the decline of the last three years? According to experts, these 5 Chinese stocks in 2024 could have surprising strength.
The Chinese economy is struggling to recover from the Covid-19 pandemic, and the downgrade of Chinese sovereign bond rating has further affected investor sentiment.
Within the complex Chinese economic landscape, plagued by demographic challenges and real estate problems, however, some sectors are emerging with growth potential that is capturing the interest of investors.
Let’s see in detail which companies we are talking about.
1) BYD
One of the sectors in which China shows significant strength is that of electric vehicles. BYD, a Chinese giant in the sector, is considered an interesting purchasing opportunity. With more than 3 million energy vehicles produced in 2023 and the imminent launch of a high-performance vehicle, BYD could overcome Tesla for the second consecutive year in terms of production. Although BYD shares fell about 2.7% in the first session of the year, its commitment to in-vehicle smartphone technology could be a selling point for investors.
- BYD graph
- Source: Tradingview
2) Zijin Mining Group
Zijin Mining Group is positioned in an important position in the context of the global energy transition. With a strong presence in copper and gold mining, the company is well-positioned to deliver significant growth in the coming years. In a context in which the demand for copper is constantly increasing, driven, among other things, by the transition towards electric vehicles, Zijin Mining Group establishes itself as a world leader in the production of this precious metal.
The shares’ positive performance, up 1.3% at the start of the year, suggests that Zijin Mining may indeed emerge as a major player in China’s mining sector. This growth not only strengthens the company’s position in the market but also offers investors attractive opportunities in the mining sector, confirming its centrality in global copper production.
- Source: CNBC
3) Xiaomi
The well-known smartphone manufacturer Xiaomi is trying to diversify by entering the automotive sector. With the recent announcement of its first electric vehicle, the SU7, Xiaomi aims to become one of the top five car manufacturers in the world, competing with Tesla and BYD. Although China’s auto market faces challenges such as overcapacity and decreasing demand, Xiaomi’s ambition to create a dream car could attract the attention of investors interested in China’s auto sector.
- Source: CNBC
4) CATL
CATL (Contemporary Amperex Technology) is the world’s leading supplier of electric vehicle batteries and holds approximately 60% of China’s lithium-ion battery market. With a 57% growth in energy storage unit production in the third quarter of 2023, CATL remains at the top of the industry. Despite competition and slower earnings growth in Q3 2023, CATL continues to be a key player in the electric vehicle battery market.
- CATL graph
- Source: Tradingview
5) Sunresin New Material
Sunresin New Material is a Chinese chemical company leading in the production of ion exchange resins and technology for the extraction of lithium carbonate, a fundamental mineral for the construction of batteries. With the global lithium sorbent market growing, Sunresin could benefit from increased demand. With a steadily growing market share in China, the company is positioned to play a key role in the battery essential materials sector, offering investment opportunities in the growing market.
- Sunresin New Material graph
- Source: Tradingview
Despite the economic and demographic challenges facing China, investing in specific stocks in key sectors such as electric vehicles, mining, battery manufacturing, and battery materials could prove beneficial for investors interested in the China market in 2024. However, it is important to note that investments involve risks, and detailed research and financial advice are essential before making investment decisions.
|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|
Original article published on Money.it Italy 2024-01-04 07:59:00. Original title: 5 azioni cinesi che nel 2024 potrebbero schizzare al rialzo
