2 Undervalued Chinese Stocks

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2 Undervalued Chinese Stocks

Chinese Stocks Which Are Undervalued

An improvement is seen in the China-US trade relations. This has also pushed many investors to start looking at the Chinese stock market for some good picks.

The two stocks that stand out the most are Li Auto and Baidu. Both of these stocks are available on the Nasdaq which makes it easy for even US investors to buy these stocks.

Baidu

Many even call this company the Chinese Google, and they are totally right. Baidu is in China what Google is in the USA and the rest of the world.

Today, Baidu is a lot more than just a search engine... They are involved in autonomous driving, cloud computing, AI, and many other fields.

Now that the trade tensions have eased, there are many factors that make Baidu a great tech stock. For starters, it offers exposure to the tech sector of China.

Also, the company is profitable and has a very solid revenue base based on just the domestic market.

But the most interesting growth story is presented by Baidu's AI capabilities. One of China's top large language models, the Ernie Bot, is rapidly gaining traction among users and effectively competing with other domestic AI products.

Li Auto

Next is Li Auto, which is a popular EV manufacturer from China. They sell EVs, EREVs, and a lot of other vehicles powered by renewable energy.

China has a massive market for sustainable transportation, and Li Auto is in a unique position to fill that role. So, we can expect a lot of upside in the Li Auto shares during the next few years.

With steady monthly sales growth and a recent delivery volume surpassing both NIO and XPeng, the company has established a niche in China's competitive EV market.

Li Auto's business benefits from a number of tailwinds brought about by the reduction of US-China trade tensions. The economics of its supply chain would be improved most immediately by any removal of trade restrictions or tariffs, especially for semiconductor parts used in its sophisticated driver assistance systems.

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