Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Upgrade Now
Insider Monkey
10 Chinese Stocks Billionaires Are Loading Up On
Hamna Asim
11 min read

In This Article:

In this article, we discuss 10 Chinese stocks that billionaires are buying. If you want to see more stocks in this selection, check out 5 Chinese Stocks Billionaires Are Loading Up On. 

The economy of Asia and the Pacific stands out positively amid the global economy's uncertain recovery. The International Monetary Fund predicts that this region will contribute approximately 70% of the world's economic growth this year, a significant increase as compared to previous years. It is expected that the growth rate in Asia and the Pacific will increase to 4.6% in 2023, up from 3.8% last year. As per IMF, the primary factor contributing to this development is the reopening of China, which has led to a surge in consumption and subsequently boosted economic growth throughout the region. This positive trend continues to shine, despite weaker demand from other parts of the world. 

However, there are potential threats to this outlook, such as the spillover effects from the unexpected tightening of US monetary policy and disruptions in the supply chain due to geopolitical tensions. The IMF also noted that going forward, the Chinese economy, which has long played a crucial role in driving regional and global growth, is projected to experience a substantial deceleration due to unfavorable demographic conditions and declining productivity. To secure sustained growth in the long run, the region should give priority to enacting structural reforms, fostering innovation and digitalization, and accelerating the shift towards renewable energy sources, per the IMF. 

China Briefing recently discussed official economic data by National Bureau of Statistics (NBS) for the first quarter of 2023, which was published on April 18. The data showed that China's economic recovery is moving along well after the country lifted some of the strictest COVID-19 restrictions near the end of 2022. Q1 2023 gross domestic product indicated a growth rate of 4.5%, exceeding both the 4% growth forecast by Wind, a Chinese data provider, and the expectations of economists surveyed by Reuters. This growth rate also represented the largest expansion of China's economy since Q1 2022. In 2022, China's GDP increased only by 3%, missing the official growth target of "around 5.5 percent". The unexpectedly strong GDP growth in the first quarter of 2023, paired with the surprising double-digit growth in exports and retail sales in March, has generated optimism in the markets regarding China's economic recovery.

According to a private sector survey cited by Reuters, China's factory activity unexpectedly rebounded in May. This turnaround was supported by improvements in production and demand, offering relief for companies struggling with declining profits. China's recovery from the uncompromising COVID-19 restrictions has been precarious and uneven, as demonstrated by a slump in imports, factory gate prices, and property investment during April 2023. However, the manufacturing subindexes disclosed that factory output experienced its quickest expansion in 11 months, and new orders, as well as new exports, also rose in May. Despite these positive developments, business confidence for the next 12 months dropped to a seven-month low due to concerns about the global economic outlook. Zhou Hao, an economist at Guotai Junan International, expressed the following in a written statement: 

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories