Top China Stocks for Chinese New Year
To all of our Chinese visitors, Happy New Year! Chinese New Year is also known as Lunar New Year or Spring Festival. It’s the beginning of the new year on the Chinese traditional calendar. This time around, it falls on February 5, 2019, which is today. It’s now the year of the pig, or more specifically, the earth pig. In honor of Chinese New Year, we present the top China stocks (that are tradable for investors in the U.S. markets as ‘ADRs’) in terms of year-to-date performance.
China Stocks (ADRs)
Though China stocks generally had a rough 2018, they bounced back throughout January, much like U.S. and other international equity markets. The chart of the FXI ETF (iShares China Large-Cap ETF) shows the rally in China stocks for the past month after having fallen along with other markets in December. Though FXI does not cover U.S.-listed China ADRs, it’s still a solid barometer of the Chinese equity markets overall.
An ADR, by the way, is an American Depositary Receipt. Essentially, it’s a certificate issued by a U.S. bank representing shares in a foreign stock traded on a U.S. stock exchange. ADRs are an easy way for non-Chinese investors to invest in certain Chinese companies. Otherwise, it’s difficult for foreign investors to trade most China stocks directly.
Top China Stocks Year To Date
The overall Chinese market certainly made some gains in January and into February thus far. But the China stocks shown on the chart above and outlined below far outperformed. The chart above shows the current prices and year-to-date (YTD) performance numbers for the five strongest stocks (as of the market close on Monday, 2/4/2019). Here they are:
- EDU: New Oriental Education | Price: $76.84 (as of the 2/4/2019 market close) | YTD Performance (as of the 2/4/2019 market close): +40.89% | New Oriental Education and Technology Group Inc. is the largest private education company in China in terms of student enrollment. Among other services, the company provides education, both online and in person, for pre-schoolers, English language learners, aspiring international students, and many others.
- IQ: iQiyi | Price: $20.47 (as of the 2/4/2019 market close) | YTD Performance (as of the 2/4/2019 market close): +37.89% | iQiyi is an online video site based in China that reaches a vast audience – one of the largest audiences in the world at around 500 million monthly active users.
- PDD; Pinduoduo | Price: $29.99 (as of the 2/4/2019 market close) | YTD Performance (as of the 2/4/2019 market close): +33.50% | Pinduoduo is a Chinese online platform that specializes in providing group shopping deals and discounts to its users.
- CTRP: Ctrip.com | Price: $33.65 (as of the 2/4/2019 market close) | YTD Performance (as of the 2/4/2019 market close): +24.17% | Ctrip.com is the largest travel booking site in China, providing flight, hotel, transportation, and tour reservations.
- SNP: China Petroleum & Chemical | Price: $83.78 (as of the 2/4/2019 market close) | YTD Performance (as of the 2/4/2019 market close): +18.99% | China Petroleum and Chemical Corp., also known as Sinopec, is an oil and gas subsidiary of the largest oil refining, gas and petrochemical conglomerate in both China and the world.
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Technical Analyst at The Technicals
As a momentum stock trader, Luke focuses mostly on strong market moves. Luke has been trading the markets since the early 2000s, but still gets excited by big movers. Whether a surging large-cap tech company or meteoric penny stock, Luke tracks and trades winners. A technical analysis purist, Luke authors many of our Top Stocks & ETFs reports. Contact Luke