$Trip.com Group Limited(TCOM)$  

These Are The Top 5 China Stocks To Buy And Watch Now

ED CARSON 04:59 PM ET 12/06/2022

China is the world's No. 2 economy and home to dozens of companies that trade in the U.S. Right now, JD.com (JD), Pinduoduo (PDD), Canadian Solar (CSIQ), Daqo New Energy (DQ) and Trip.com (TCOM) are China stocks worth watching or potentially buying.

It's been a tough couple of years for Chinese stocks. The Covid pandemic, and Beijing's zero-Covid policy, have slammed the economy. Meanwhile, regulatory crackdowns vs. technology and data-centric firms such as Alibaba (BABA), Tencent (TCEHY) and NetEase (NTES) have been a major headwind. U.S. trade tensions are a concern, with the White House barring shipments of key chip technology to China, along with tariffs and other curbs on Chinese goods.

However, the tech crackdown seems to have eased, while China appears ready to relax its severe Covid restrictions. There are always risks that these hopeful signs will not pan out, or take far longer than expected.

But for now, Chinese stocks are roaring back. Along with price gains, volume has picked up, providing further evidence of a change of character. Along with China-specific bullishness, there's a confirmed stock market rally that's been ongoing for the past several weeks.

While the current top China stocks to buy or watch are dominated by e-commerce and solar plays, don't forget EV makers such as Nio (NIO), Li Auto (LI) and global giant BYD (BYDDF). All are taking on Tesla (TSLA) in the world's largest EV market, with BYD racing past Tesla in total sales.

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

Top Chinese Stocks To Buy Or Watch

JD.com

JD

Retail-Internet

Daqo New Energy

DQ

Energy-Solar

Canadian Solar

CSIQ

Energy-Solar

Trip.com

TCOM

Leisure-Travel Booking

Pinduoduo

PDD

Retail-Internet

Trip.com Stock

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

Trip.com has a profitable history, though it reported losses in Q1 and Q2, with Q2 revenue down 34% vs. a year earlier. But profits are seen rebounding, then surging in 2023.

Trip.com earnings for the third quarter will be released on Dec. 14.

TCOM stock hit a nine-year low of 14.29 in March. Since then Trip.com stock has rebounded. A late August breakout attempt failed, with shares retreating to 19.25. But then it rebounded in volatile fashion. TCOM shares rebounded from the 50-day line on Nov. 28 and have kept running, finally clearing resistance around 30-31 on Nov. 30.

Shares are now extended from that area, with earnings looming.