5 Best Chinese Stocks To Buy And Watch: China Audit Shift May End Delisting Threat

Hundreds of Chinese companies are listed on U.S. markets. But which are the best Chinese stocks to buy or watch right now? JD.com (JD), NetEase (NTES), Li Auto (LI), Xpeng (XPEV) and BYD Co. (BYDDF).

China is the world's most-populous nation and the second-largest economy with a booming urban middle class and amazing entrepreneurial activity. Often dozens of Chinese stocks are among the top performers at any given time, across an array of sectors.

Delisting Fears Ease

Delisting fears have hung over Chinese companies listed in the U.S. for quite some time. China has refused to allow U.S. auditors to review Chinese companies' books, which U.S. law requires. The U.S. has threatened to delist Chinese companies as a result.

In recent weeks, various reports hinted at a possible compromise, while others signaled less optimism. The U.S. Securities and Exchange Commission has been building a list of companies that are at delisting risk. The news has sent U.S.-listed Chinese stocks soaring and plunging. Shares skyrocketed on March 16 as Beijing signaled support for Chinese companies listed in the U.S and said that a crackdown on internet giants will end "as soon as possible."

U.S.-listed Chinese stocks rebounded generally on April 1, on a Bloomberg report that Beijing is willing to give U.S. auditors full access to more than 200 Chinese companies listed in New York. If that happens, it would end delisting fears for all but a few U.S.-listed Chinese companies with sensitive data.

On April 2, China's securities regulator said it will release revised regulations for Chinese companies listed overseas. Notably, this line will be removed from the rules: "On-site inspections shall be conducted primarily by Chinese regulators or rely on the results of inspections by Chinese regulators."

Chinese internet and EV stocks rose in Hong Kong on Monday morning.

However, even if a tech crackdown and delisting fears recede, there are still major concerns.

China has reimposed sweeping Covid restrictions as it faces its biggest coronavirus outbreak since early 2020. Shanghai is in lockdown, with cases continuing to rise. Widening lockdowns and restrictions could have a significant impact on production and demand.

Best Chinese Stocks Across Many Industries

As the world's largest internet market, it' no surprise to see big growth from China stocks focusing on e-commerce, messaging or mobile gaming. Notable Chinese internet stocks nclude:

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