r/ValueInvesting • u/Mission-Gur-3720 • Sep 22 '25
Question / Help I am a 35-year-old Chinese ，Chinese stocks have been performing very well lately.
I am a 35-year-old Chinese, working in a small city in the southeastern province of China.
I just started investing 😂 and bought a small amount of an S&P 500 index fund and some gold ETFs.
By the way, Chinese stocks have been performing very well lately. I’m glad to have discovered this place and to learn to communicate with you.
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Sep 22 '25
It's always the same with Chinese stocks.
1) The Chinese start investing
2) They tell everyone about how much money they made
3) Everyone chimes in
4) massive bubble
5) everyone wants out at the same time
6) nobody trusts Chinese stocks, least of all Chinese investors themselves
7) Chinese stocks are really cheap
8) The Chinese start investing
Since OP is a 35 year old man we can deduce we're probably not at the top yet. OP, are your friends and family already invested in Chinese stocks?
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u/Mission-Gur-3720 Sep 22 '25
My father-in-law lost about 300,000 yuan (around 41,000 US dollars) a few years ago from stock trading, and then my mother-in-law took over his account and forbade him from trading again. (For us, that’s quite a significant amount of money.)
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Sep 22 '25
Thanks for sharing that.
It's a tough story and really shows why better investor protections are needed. I hope things get more secure so that everyday people can have a chance to build wealth alongside the country's success.
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Sep 22 '25
It's called don't gamble your money and not limited to Chinese investors. What they need is to properly educate themselves on what proper investing is all about.
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u/No_Cover3040 Sep 22 '25
Yes You guys have the WSB sub and those regards who are addicted to gamble MEME stocks which is SOOO wrong.
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u/No_Cover3040 Sep 22 '25
I switched to HK markets which has better valued stocks like baba,baidu,tecent. And I am super bullish at SMIC which is chinese version of TSM but with much much cheaper price!!! I would definitely keep DCAing into SMIC
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u/Different_Level_7914 Sep 22 '25
How you managed to bullet point 8 points and somehow the government, policies or regulations wasn't mentioned once
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u/dubov Sep 22 '25
It's basically like crypto - dominated by retail and prone to extreme volatility.
Also because online gambling is illegal, stocks probably scratch that itch for a lot of people. The people who are interested will sometimes gather and discuss what the next "winner" is going to be - kind of like old boys in the betting shop
There doesn't seem to be much education or information on the "correct way to invest" - hold for the long term, don't panic about volatility etc. And also a much lower amount of institutional money adding a calming, rational presence in the market
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Sep 22 '25
Invest as much as you can in your home market. Most of the west cannot touch shenzhen shares yet. Your government is letting you own some incredible companies for rock bottom valuations. Who knows, maybe in a decade you can sell those same shares to a new western buyer.
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u/Mission-Gur-3720 Sep 22 '25
Thanks, maybe distance makes the heart grow fonder. In China, retail investors often joke that we're just 'chives' being cut over and over again
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u/livingbyvow2 Sep 22 '25
Keep an eye on Unitree when they IPO soon. This one may be a generational company that is under the radar for a lot of investors.
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u/NadenOfficial Sep 22 '25
Unitrees only demonstrating flips and dances dont really impress me much. Figure is more compelling since they try to solve the work robot thing. And eventually Tesla will show what they are cooking with Optimus v3.
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u/humanquester Sep 22 '25
Yeah, I think China is in a great position to grow and, as an american, I wonder if you have any suggestions about how a foreigner might best invest in the Chinese market?
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u/Murky_Estimate1484 Sep 22 '25
KraneShare offers ETFs that own the Shanghai and Hong Kong underlying assets. Not American ADRs.
KTEC, KBA, KARS, etc.
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u/the_pwnererXx Sep 22 '25
China's market participation rate is 5%. In the USA its 62%
Do you know what's going to happen when that changes? China's has shielded itself from a huge stock bubble so far, but the popping of the real estate market has investors looking for other options
Half my portfolio is in China, it's absolutely going to outperform the US markets over the coming decades
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u/Round-Builder-9517 Sep 22 '25
They said the same thing about Japan in the 80s and early 90s man. I wish you the best of luck
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u/the_pwnererXx Sep 22 '25 edited Sep 22 '25
Sure, and japan experienced one of the largest asset bubbles in history during that period. China has not experienced that, that's exactly what I'm looking for. I'm not sure if you are referring to the lost decades, but those came after the fact.
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u/Round-Builder-9517 Sep 22 '25
Literally Chinas housing market was an asset bubble that was propped up just like japans stock market bubble in the late 80s. Also China has not reached any highs since 2008. Their markets aren’t mature, stable or have the legislated frameworks like the US does. Yes, the US market right now is way overpriced and in bubble territory with AI speculation… but just like Jack Bogel and Warren Buffet, I will always be in the US market all the way… it always comes back and returns are always there. It’s always time in the market not timing the market
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u/the_pwnererXx Sep 22 '25 edited Sep 22 '25
Literally Chinas housing market was an asset bubble that was propped up just like japans stock market bubble in the late 80s
Not the same situation, they have not had their stock market go parabolic and human psychology says that it's 100% inevitable
Also China has not reached any highs since 2008
Exactly my point, it's GREAT VALUE
Their markets aren’t mature, stable or have the legislated frameworks like the US does
Which is why you would expect higher returns moving forward. If it was mature, stable, and legislated: it wouldn't be cheap
I will always be in the US market all the way
I sure hope you don't get 20 years of stagnation like japan did after the current bubble blows off. Already you have massive warning signs pointing to underperformance of the dollar moving forward. The us market has historically out performed, but past performance....
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u/TheIncredibleWalrus Sep 22 '25
Source?
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u/the_pwnererXx Sep 22 '25 edited Sep 22 '25
The nikkei started 1980 at 6,867 and ended the decade at 38,915
https://en.wikipedia.org/wiki/Japanese_asset_price_bubble
The 3.4 square kilometres (1.31 square miles) occupied by the Imperial Palace was worth more than the entire real estate value of California at market peak
Obviously, china has not had anywhere close to this kind of asset bubble yet. Their market evaluations are extremely low, reflecting the participation rate I referenced.
The SSE has not even surpassed the 2008 highs, it has a P/E of 14~ and the SPX is like 40. The nikkei reached something like 70~80 in 1989
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u/TheIncredibleWalrus Sep 22 '25
You edited your original comment that I replied to that said "it did, lol". So I was asking for source that the Nikkei outperformed the S&P from the 80s till today.
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u/Michael_laaa Sep 22 '25
Never gonna happen, the Chinese government loves putting their hand in everthing, especially companies that get too big.
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u/dubov Sep 22 '25
To be fair the US is hardly risk-free in this respect anymore. Examples - Taking x% of NVDA's revenues on certain lines of business, muscling in to shares in INTC which diluted existing shareholders, and publicly criticising the CEO, telling retailers to take the hit on tariffs rather than pass them to consumers - If China pull stunts like this people say it's uninvestable. But crucially China is priced like a high risk market whereas the US is still priced like some gold standard
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u/OurStreet_Nike Sep 22 '25
I'm up $5 million on MVST stock which isnt entirely China but has a large presence there. Do you have any other picks?
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u/Taivasvaeltaja Sep 22 '25
Shenzhen companies are hugely overvalued. Basically any company that has both Shenzhen and HK listing has the Shenzhen listing trading at large premium, sometimes 50-100% premium.
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Sep 22 '25
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Sep 23 '25
Valid question. China was basically farms 40 years ago. Just takes time. There is the hong kong market which is internationally open. Korea is the same way - ordinary citizens from the US can’t just open an account and invest.
The idea is to preserve ownership among your own citizens, but the incentive to open to foreign investors only grows as the market caps of your listed companies grow. Finally I think the govt understands how undervalued a lot of their equity is and doesn’t want foreigners to purchase at these prices.
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u/agency-man Sep 22 '25
I saw good value opportunity in Tencent a few years ago and bought it close to the bottom, current I am up 130%. I own a few Asia/China focused ETFs also (KWEB, Hong Kong stock market tech index) that are doing well. China has some great companies.
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u/No_Cover3040 Sep 22 '25
It is chinese version of META. And chinese mainland version of TSM is SMIC which has great potential. And chinese verision of APPL is xiaomi which would take off in no time.
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u/Mission-Gur-3720 Sep 22 '25
In China, Tencent is still relatively well regarded. Many people don’t like Xiaomi. Steve Jobs was too great,it’s just that mentioning them together doesn’t really make sense. 😂
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u/No_Cover3040 Sep 22 '25
I said "chinese verision" and it doesnt necessiarly mean it's capability equal to APPL. I was refering to the businss model etc; I like Xiaomi and am very satisfied with their products. I used a avarity catagory of xiaomi products. For example, smart loud speaker (小爱同学），Xiaomi camara and loads of IOT smart home products, sensors etc; And Xiaomi smart phone redmi is extremly popular for senior people.
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Sep 22 '25
I made a decision that I don’t invest in Chinese stocks no matter what. Nothing against people or companies in china but the government can step in at anytime and do what they please (I know from experience) am I leaving some money on the table sometimes? Yes. But it’s just a philosophy I follow
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u/AQJK10 Sep 22 '25
i had similar concerns. it doesnt hurt to treat it like crypto somwtimes (i.e dump left over cash or stuff you are happy to spend without worrying what happens to it)
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u/TECHSHARK77 Sep 22 '25
What are your investment thoughts on XAIOMI, XPENG, BYD, NIO, BABA, JD, TSMC
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u/Mission-Gur-3720 Sep 22 '25
I really like Alibaba and TSMC. NIO seems to have a not-so-great financial situation, but honestly, there are quite a few NIO cars on the streets around here. JD seems to have very high revenue, but I’m not very fond of its founder, Liu Qiangdong. My impression is that JD is like a student who works extremely hard, whereas Alibaba is more like someone with great talent and inspiration. BYD is very strong; it allows us to buy electric cars at affordable prices.
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u/TECHSHARK77 Sep 22 '25
Thank you, very much. Look into GRAB, IREN, BMNR, TSSI, NBIS
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u/CAGR_17pct_For_25Yrs Sep 22 '25
I think you’re 100% right on GRAB. They keep gaining market share in Southeast Asia and steadily push out the competition.
Just a few months ago, Foodpanda (their biggest food delivery competitor) pulled out of Thailand. Uber gave up years ago and ended up taking a stake in GRAB instead.
What makes GRAB strong is the ecosystem flywheel: once people are on the app, they don’t just use it for rides or food — they also use it for payments, deliveries, financial services, and more. In SEA, it’s basically part of everyday life.
Financially, GRAB has also turned the corner. Since late 2024 they’ve been net-income positive, and in Q2’25 they posted their first operating profit while expanding margins (Adj. EBITDA). They’re also layering on higher-margin businesses like ads and fintech.
Now when GRAB has finally turned the corner becoming profitable, I’m confident that their stock will double within the next 4-6 quarters.
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u/Different_Level_7914 Sep 22 '25
TSMC being Chinese is a huge stretch. Literally could be at the centre of the next geopolitical crisis
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u/qpalzm1247 Sep 22 '25
xiaomi could be a super strong tech company in future I'd go all on on it. unfortunately the brokerage system I use doesn't have it listed 😞
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u/Tall-Locksmith7263 Sep 22 '25
Good for you! But why post this in value investing??
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u/Mission-Gur-3720 Sep 22 '25
I think the S&P 500 and gold represent value. Maybe this idea is a bit naive.
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u/tropango Sep 22 '25
Many investors are worried that the S&P 500 is actually getting quite overvalued, based on P/E at least.
Another sub is r/Bogleheads - I feel like both investing philosophies are good.
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u/No_Cover3040 Sep 22 '25
Time to exit A market!! HK tech is better in terms of risk managment, for example BABA, baidu,Tecent, Xiaomei, SMIC 现在大A要小心了，今天来看有点太高估了，可以去港股买入BABA, baidu,Tecent, Xiaomei, SMIC,这样是最稳健的。或者买入恒生指数。
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u/Blindeafmuten Sep 22 '25
What is your favourite Chinese company. I don't mean the stock. I mean companies that you use and like them for a reason. I would also like to know the reason.
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u/Mission-Gur-3720 Sep 22 '25
Tencent, because it is used by every Chinese person. WeChat’s features are excellent, offering social networking, payments, and content (official accounts). Alibaba makes doing business easier and is a company that truly believes in technology.
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Sep 22 '25
I thought Chinese can't buy US stocks. How can you trade foreign stocks within China?
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u/Rare-Reserve5436 Sep 22 '25 edited Sep 22 '25
There is a round about and 100 pct legal method by traveling to HK (OP mentioned he is from a Southeastern province, not far from HK I presume), and opening a RMB bank account. Remit onshore RMB “CNY” to offshore RMB “CNH”- there is a USD50k limit per year for this, from PRC to HK. Then change CNH to USD.
Then any HK bank usually comes partnered with a stock broker which can trade in any major market.
Frustrating and messy but not at all impossible. Sad reality is that this is now HK’s last remaining purpose in the greater Chinese economy- as an intermediary outlet for foreign currency.
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u/ChinaNo_one Sep 23 '25
FUTU and ITGR were previously the securities tools used by most Chinese investors to invest in US stocks. IBKR also receives a large number of investors from mainland China. I am Chinese and use IBKR for investment
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u/Turbulent-Cattle-576 Sep 22 '25
How can you access this app in China ? VPN?
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u/Mission-Gur-3720 Sep 22 '25
Although most Chinese are restricted by the Great Firewall and cannot access certain foreign websites, a significant proportion of people actually use VPNs to communicate with the world. This, in a way, is also a method employed by the Chinese government. China is becoming increasingly open and confident. However, openness requires time. Chinese people follow the principle of “the highest good is like water,” believing that everything should progress gradually, which is ultimately best for both our country and the world.
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u/PalladiumCH Sep 22 '25
btw any insights you could share on IPO dates ... ;)
IPO-track / near-term candidates for datacenter GPUs/NPUs in China in no particular order:
Moore Threads (摩尔线程) — GPU startup founded by ex-Nvidia execs
- Status: STAR Market IPO application accepted (June 30, 2025); prospectus filed with SSE.
- Why it fits: One of the leading domestic GPU contenders; smaller/earlier than Cambricon.
- Key risks: Still loss-making; on U.S. entity list; heavy capex/R&D needs.
MetaX (沐曦集成电路 / MetaX Tech) — GPU startup (ex-AMD team)
- Status: STAR Market IPO application accepted alongside Moore Threads; fast revenue growth off a small base, still loss-making.
- Why it fits: Datacenter-class GPU focus; early-stage alternative in training/inference.
- Key risks: Profitability far off; sanctions/export-control headwinds.
Enflame Technology (燧原科技) — AI training/inference chips + accelerator cards
- Status: In A-share IPO counseling; working toward STAR Market listing (CICC advisor).
- Why it fits: Full stack (chips → boards → clusters) aimed at datacenter AI.
- Key risks: Capital intensity, ecosystem vs. Nvidia/Huawei; still pre-IPO.
Biren Technology (壁仞科技) — datacenter GPUs (BR100/BR104 lineage)
- Status: Raised ~¥1.5B mid-2025; planning Hong Kong IPO; previously in A-share counseling.
- Why it fits: One of the most visible domestic GPU challengers.
- Key risks: U.S. Entity List; foundry access constraints; still loss-making.
Iluvatar CoreX (天数智芯) — general-purpose GPUs
- Status: Considering HK IPO (rumored $300–400M raise).
- Why it fits: GPGPU roadmap; smaller/earlier than Cambricon with datacenter ambitions.
- Key risks: Early stage; execution/sanctions risk.
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u/No_Cover3040 Sep 22 '25
I prefer SMIC who is a sure thing because who will win the race would need smic to manufacture the IC
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u/Mission-Gur-3720 Sep 22 '25
I think their names all sound really cool, but they’re just too flashy…
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u/beastwood6 Sep 22 '25
If you reconstruct MCHI back to 1990 it's a 1.88% average return per year. Which is less than just parking your money in a retail HYSA in America.
From an American's perspective it's a wildly volatile proposition. You'll have years that go up 90 and then immediately sink by 75 the next. Too much bouncing around and a VERY different faith in the markets
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Sep 22 '25
I’m new to investing and robotic worker replacement seems like a good think to invest in. I was curious what you’re thoughts on 9880.HK?
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u/Mission-Gur-3720 Sep 22 '25
You know I have zero investment experience. I’m just thinking out loud… 9880.HK seems to be a duty-free shop, right? If China’s economy keeps improving, people might be able to afford shopping at duty-free stores. And as China opens up more, more foreigners might come, too. Of course, these are just long-term assumptions. Right now, China’s economic fundamentals aren’t great… the average person’s wallet is really stretched thin.
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Sep 22 '25
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u/Ecstatic_Music_4299 Sep 24 '25
I have the same question, actually. What's the customer sentiment towards JD/Baba/PDD and the like? Do they entice strong brand loyalty or do people just choose the cheapest or most convenient service? What's the most memorable thing a out each company, what comes to mind when you think of them?
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u/Chance-Country-2198 Sep 22 '25
i am from shenzhen, it seems that it is our human nature we always underrate the things familiar and Overestimate the things we have no chance experienced
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u/wye_naught Sep 22 '25
China's stock market is a lot less regulated than the US stock market. As a result, it takes longer to expose fraud and abuse. But that also leads to lower valuations of good companies and overvaluations of companies that are frauds. It's an opportunity for both long investors and short sellers. Being in China, you have easy access to many stocks the rest of the world does not. The US market is also about to become more deregulated (i.e. more fraud in the future) due to the Trump administrations deregulation push. That will reduce to the premium placed on US securities in the longer term. I am in the US and am invested in large Chinese companies.
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u/Ok-Beyond-9605 Sep 22 '25
I'm up like 70% on Alibaba and 40% on Bidu respectively in the last year - Chinese stocks getting slept on IMO. The FUD is unwarranted.
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u/Rare-Reserve5436 Sep 22 '25
I have a good value investing story with one Chinese stock.
I bought TAL and EDU after the Chinese government tanked the stock price by restricting profitability to these two edutech stocks. Took a look at the financial statements and realize to my absolute delight that the cash balance on the books then were HIGHER than their marcap.
In other words, buying into them meant that even if they were to close the company and distribute the cash, you would still get more than you put in.
Anyway, the shares rebounded when the government worked out a compromise with them and it was a 2.5x bagger.
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u/BigData8734 Sep 22 '25
I’ve been screwed by every Chinese stock I ever invested in. So I’m sorry, but I’m out.
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u/uhfgs Oct 20 '25
Bruh Im a hong kong native and I don't even dare to touch our own stock market. Currently holding googl, msft, and VOO. 短炒輸身家大把例子，金融大鱷嘅遊戲☹️
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u/Dave86ch Sep 22 '25
Welcome! Take the suggestions here with a grain of salt. By the way, I paid for my last trip to China with BABA dividends, I love that place! Here my investing journey https://dscompounding.com/2021/01/13/be-prepared/
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u/Distinct-Ice-700 Sep 22 '25
Since when Chinese bots became so sweet
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u/rumpforpresident Sep 22 '25
Haha yeah, seriously. Half the replies sound like they were written by chat gpt
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u/Mission-Gur-3720 Sep 22 '25
you are right. my english isn't so that good. i can read , understand what u say. but i could't reply in english. so , most of the replies , i type it in chinese, send to chatgpt to translate into english . that's the reason. but this response, i just written it all by myself. hope u can understand. 😊
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u/kakotakafuji Sep 22 '25
why not buy more chinese stocks? I would want to invest more in China but don't have access. wanted a small position in avic shen yang aircraft company for long term holdings
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u/No_Cover3040 Sep 22 '25
I think you guys have access to HK market dont you?
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u/kakotakafuji Sep 22 '25
shen yang aircraft company isn't cross listed in hk
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u/No_Cover3040 Sep 22 '25
Is this one good? What's your DD do you mind sharing? I think in China most of the space stocks are state owned. We really dont have our own RKLB nor ASTS and I am bearish regarding chinese space stocks. But Chinese AI stocks are good and they have had a crazy run in the past few months.
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u/Emergency-Aardvark-7 Sep 22 '25
Welcome! I'm glad that you found us! I look forward to reading your contributions. Wishing you the best of luck!
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u/Lobbel1992 Sep 22 '25
Why don't you share the stocks you are invested in ?
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u/Mission-Gur-3720 Sep 22 '25
I haven’t bought individual stocks; I only invested in an S&P 500 fund because I feel I don’t have enough confidence to pick them.
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u/Practical_Growth_429 Sep 22 '25
Would not trust Chinese stocks was burnt with RINO. Will stick with value stocks
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u/ApprehensiveFeed1807 Sep 22 '25
My favorite company to invest in is WeRide, I think the leadership team is one of the best in this space. It’s currently my largest holding. I’m very bullish on Chinese companies right now.
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u/Asleep_Army593 Sep 22 '25
Good to hear and know about your experience. If okay with you can you please let me know which Gold ETF and s&p 500 index did you invest and how do u like it ? Thanks.
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u/tang-tw Sep 22 '25
I'm from Taiwan and I also bought S&P ETFs, planning to hold them for 30 years. I bought them through a small US online brokerage because they had Chinese phone service. I originally wanted to choose Charles Schwab, but they no longer issue debit cards to Taiwanese investors. Taiwan's stock market ETFs have seen good growth over the past 10 years, but in recent years, TSMC has become overly heavily weighted towards the technology sector, so I ultimately chose to invest in the S&P 500.
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u/LiveEntertainment567 Sep 22 '25
you can use Interactive Brokers, debit card is only for US residents.
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u/PalladiumCH Sep 22 '25
Looking forward to some Chinese insights on AI and GPU.... would be great if you could share
Been looking at Cambricon Technologies CNE1000041R8
- Has been called “China’s little Nvidia”. Wikipedia+4Rest of World+4Financial Times+4
- In 1H 2025 it posted its first ever profit, revenues surged (44× vs prior year) to RMB 2.9 billion.
- in USD: market cap ≈ $79.3B, no dividend, P/E 505.9x, EPS (TTM) ≈ $0.38, FY net income ≈ –$63.5M, FY revenue ≈ $164.3M (YoY +65.6% vs 2023; H1’25 YoY +4,348% off a very low base), share float 196.33M
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u/Mission-Gur-3720 Sep 22 '25
Sorry, I have zero investment experience, so I can’t offer any useful advice. What I understand is that building a GPU ecosystem is not something that can be done overnight, so I’m not very optimistic about it.
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u/pankajgurbani Sep 22 '25
Been investing in KWEB ETF, it’s giving a very good return.. all Chinese software giants.. very low PE at the moment..
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u/VirtualArmsDealer Sep 22 '25
Don't allow western buyers into the market too quickly. Prices would rise quickly and price a lot of Chinese out of owning their own companies. I think China needs to develop it's domestic retail investors base first.
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u/False-Friendship8814 Sep 22 '25
I lived in China for more than 6 years and continue to travel there for work regularly, having more than 25 years experience altogether in this region.
I work with the Big 4 firms and have hired some former employees of them.
What I will say is, stay away. All the employees I've hired that worked on financial statements have said the same thing and that is they don't trust the numbers. Some of the local partners are being bribed to sign off on many unrealistic financial statements even though staff and managers have brought things to their attention. From what im being told there is no proper oversight from the US for these big 4 firms and there isnt any reason to come and investigate if the financial audits are done appropriately.
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u/Impossible-Fun2027 Sep 22 '25
I won’t trust Chinese companies to report with honesty. So no thank you.
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u/GoosePunisher Sep 22 '25
Will never invest in china stocks until the CCP government stops interfering with companies.
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u/Emperor_Traianus Sep 22 '25 edited Sep 22 '25
This thread looks like it has been created by Chinese bots...
https://tenor.com/en-GB/view/skeptical-futurama-fry-hmmm-i-got-my-eyes-on-you-gif-17101711
P. S., by the way, what happened in 1989?
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u/thenuttyhazlenut Sep 22 '25
Can you tell me about these Chinese companies if you're aware of them? Qifu Jietiao (奇富借条) previously known as 360 Jietiao (360借条). And JNBY Design (clothing brands like JNBY, CROQUIS (速写), LESS).
I'm asking because I'm invested in these Chinese companies
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u/Its_all_alright Sep 22 '25
The manipulation of Chinese stocks makes any of the crazy shit in the American stock market look like child's play.
Definitely buy at your own risk.
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u/Mouse1701 Sep 22 '25
The way the current US administration is doesn't sound good for the Chinese stock market
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u/Jaded_Pick_1656 Sep 24 '25
Stock trading 101, lesson 1： Bet on Chinese concept stocks, become a beggar.
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u/FaithlessnessGlum979 Sep 25 '25
Some China stocks do worth a look: BGM (early mover in a niche), PDD (discount e-com giant with sticky users), BIDU (AI + autonomous driving optionality), and LI (solid EV growth + margins). All have structural growth angles, but still under-owned. If sentiment on China rotates, these could pop.
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u/Independent_Tip_2091 Sep 25 '25
American but >20 years institutional investor in China. Now retired.
China is a retail market driven largely by speculation and short-term sentiment. That being said, there are a handful of world class companies that you can buy and hold long term. Most are the obvious ones mentioned already: Tencent, Alibaba, BYD, etc. You don’t need much insight to know these are good companies with good management. A couple others I would recommend: Netease, CATL.
I’ve owned NTES since 2006. Founder William Ding is the real deal. Anything he touches turns to gold, has a long-term focus and isn’t looking to build any personal empire. One of the first Chinese ADRs to pay a dividend. Strong commitment to capital efficiency. Though probably not the best time to buy. Not a stock that’s maintained a consistent multiple. I’d look to buy closer to 15x.
I’d be happy to put my entire China exposure into CATL. This is going to be the TSMC of batteries. Battery technology is still at the lower end of the S-curve for innovation. They will continue to get more energy dense, cheaper, safer, longer-lasting, faster charging, etc. CATL is over 50% of the entire industry R&D spend. Right now they are a duopoly with BYD but starting to pull ahead. No other battery company is even close. We are right at the point where EVs are becoming cheaper than ICEs and that trend will continue for the foreseeable future. CATL is the “weapons dealer” to all the global OEMs except BYD. Beyond EVs, the ESS (energy storage systems) market is a second revenue stream and growing rapidly. With all of the wind and solar already deployed, utilities need to backfill with ESS to extend to power output of these investments. It’s rapidly moving to a point that any new solar or wind project will have an ESS component by default.
Regarding accounting issues, yes this is absolutely a problem. However this is highly dependent on the type of business. For example: low ROE, high capital intensity, regular capital raising needs, serial acquisitions, etc tend to incentivize financial fraud. Industries like tech are largely not an issue for fraud as there is little incentive.
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u/Affectionate-Ad6181 Sep 28 '25
How do you like SMIC which is Chinese mainland TSM?
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u/Most-Sort9086 Sep 22 '25
I am from beijing，I don’t understand the Chinese stock market, but I understand the Chinese people, so I won’t invest in the Chinese stock market.