Table of Contents Hide
- An Overview of China’s Economy
- The Benefits and Risks of Investing in China: Explained
- How to Invest In China
- Ways to Invest in Chinese Stocks
- Top Chinese Companies To Invest In – Best Chinese Stocks
Investments are beautiful when it comes out right and disgusting when it comes out wide off the mark. In this post, we’ll list the top Chinese companies to invest in based on wide research and analysis from top experts.
China is one of the fastest-growing markets in the world. After posting high single-digit growth over the past two decades, the country is expected to outpace the United States and become the world’s largest economy over the next few years. And with its enormous population, the country’s economic growth isn’t expected to slow down soon.
As of the largest economies, some of the biggest companies in the world are headquartered in China. China is the world’s largest manufacturer and is a major exporter of electronics, medical equipment, machinery, and vehicles.
Before making investments related to China, investors should consider the compromises, understand the risks and rewards, focus on shareholder-friendly companies, and stick to investments they understand.
Stay with me as I guide you through a detailed process of how to invest in the Chinese market. See the table of contents below for a cursory look.
Let’s take a look at a brief overview of China’s economy.
An Overview of China’s Economy
China has historically been one of the world’s leading powers. But civil unrest, famines, and military defeats caused it to stagnate in the 19th and early 20th centuries. It wasn’t until 1978, when Deng Xiaoping took power, that the country focused on the market-orientated economic development and began its comeback.
Today, China’s economy is well-known for its manufacturing sector, which surpassed the United States as the largest in the world in 2010. While the communist country maintains many state-owned enterprises, its free-market policies have encouraged a sizeable amount of foreign investment. Now, the country is challenged with a transition to a more sustainable consumer-driven economy.
According to a report of China’s economic indicators from Hellenic shipping news, at an annualized rate, the economy grew 18.3% from January through to April, facilitating a complete economic recovery as the world deals with the disruption of COVID-19, and consumption reasserts itself, registering the highest tally since 1993.
In line with the GDP figures, industrial output increased 24.5% from last year, exports by 38.7%, imports 29.2%, retail sales of consumer goods 33.9%, and fixed-asset investment by 25.6%, all positive indicators showing a healthy and resilient economy, which is forecast to end the year up around 8.4% as a whole.
The impressive resurgence of China’s economy is the product of a stable internal environment facilitated by rapid and sustained containment of the COVID-19 pandemic, supply chain resilience, and other matching rebounds of other major economies.
Irrespective of geopolitical uncertainties, China remains an engine of global growth and subsequently an integral part of world recovery. This illustrates why it must continue to promote the country’s economic and development strategies, as well as setting a firm example of how to recuperate one’s economy amid crisis. The list of the best Chinese companies to invest in would show you how they’ve demonstrated this.
The Benefits and Risks of Investing in China: Explained
China’s economy may have a decent track record of success, but its stock market has been undeniably volatile. The government’s efforts to contain growth led the Shanghai Composite to fall 25% in 2015, making it one of the worst performers in the world. As a result, international investors should be cognizant of the benefits and risks before investing in China.
The benefits of investing in China include:
- Strong Economic Growth. China has reported high single-digit economic growth over the past two decades, making it a rapid-growing economy in the world.
- Rising Global Status. China holds a significant amount of U.S. debt and is poised to become the largest economy in the world, giving it growing sway in global politics.
The risks of investing in China include:
- Less Predictable. China has a government that has proven less predictable than democratic governments like the U.S. or E.U. members.
- Social Instability. China’s richest 1 percent owns over one-third of the total national household wealth, while the poorest 25 percent owned less than 2 percent. This wealth disparity might lead to social instability or rapid capital outflows.
- Changing Demographics. China’s economic success has been because of a cheap and young workforce, but those demographics could change with its aging population.
How to Invest In China
Investing in China offers you an opportunity to benefit from the modern and vibrant economy. To get started, you need to know that investments are made in the Chinese Yuan. Let’s look at the four ways you can invest in China.
#1 Invest in Chinese Equity Securities
Chinese equity securities remain one of the safest investments you can make in China. To invest in Chinese equity securities, you need to do:
Get together all of your available capital
The first step to investing is to have investment capital in a single liquid account. It’s advised you invest only capital you can afford to lose owing to the volatility of the market that goes up and down in response to demand and supply.
A good example to note happened in mid-2015 when China’s stock market crashed. Although it has stabilized some, remains somewhat volatile. If you are considering investing in Chinese stock, be aware of this volatility.
Find a broker
Real investors and traders cannot get involved in economic plays in China without a professional broker or brokerage firm. Therefore, consider the big online brokerage firms that offer easy trading in stocks and bonds. This is the easiest way to start up an investment portfolio that includes Chinese securities.
Explore different investment options
Exploring different investment options give you a plethora of options at your disposal. For a beginner investor, you can consider a single stock investment, mutual funds or other fund offers, Chinese real estate investment trusts (REITs), or even establish in a multinational already operating in China.
Analyze potential investments
Before buying a particular investment, you need to research through options to be sure you’re making the right decision. This can be done by looking at the earnings, market capitalization, and moving averages for a stock.
Here, emphasis on tracking the investments using available charts and other resources to monitor investments for eventual sale is highlighted. This goes a long way in determining your actual gains and also aids predictability.
#2 Buy Chinese Debt Securities
You can buy Chinese debt securities through the following ways:
Find a broker that trades Chinese bonds
Chinese bonds, especially corporate bonds, can be a lucrative investment for a savvy investor. However, market involvement by foreign parties is limited by the Qualified Foreign Institutional Investor (QFII) program. This program sets an upper limit for investment by foreign investors. Some trading platforms or banks may get you into the market but confirm if they offer this service.
You can also try out “Panda bonds” which are in Chinese currency but majorly sold by non-Chinese companies.
Buy Chinese corporate bonds
Chinese corporate bonds are sold by Chinese companies. They usually carry a higher interest rate than government bonds because of higher perceived risk. By purchasing Chinese corporate bonds you gain the chance to invest in higher-returning bonds.
Invest in Chinese government bonds
Chinese government bonds are issued directly by the Chinese government in Chinese Yuan.
Consider emerging-market bond funds
These funds invest in a variety of emerging market bonds, including both government and corporate bonds. Each individual fund also varies in its geographical focus, but all focus mainly on countries outside of North America and Europe. Investing in bond funds allows the investor to usually experience less risk than they would have if they simply invested in foreign bonds themselves. However, there is a significant risk associated with these bond funds as well.
#3 Invest in Chinese Real Estate
This is a direct way to invest in China. Before venturing in, you need to be resident in China for at least one year before you’ll can have access.
Nonetheless, the communist nature of China makes real estate not entirely pleasurable as the land remains a government property. However, if you wish to invest in real estate in China, you need to; find the right city to purchase real estate, consider the development of the city before making the last payment.
#4 Invest in Chinese currency
To invest in Chinese currency you need to:
Understand the forex market
The foreign exchange, or forex market allows investors to trade the world’s currencies. Trades are made by exchanging one currency for another. This means that all trades are made in amounts relative to other currencies, like 1USD for 0.8 Euros, for example. This allows traders, who can be anyone from private investors to large banks, to bet that different currencies will increase or decrease in value against other currencies. Money is made, as in other investments, by buying low and selling high.
Invest directly in the Yuan
The easiest way to invest in Chinese currency is by buying and selling the Yuan directly. This is done through the use of non-deliverable forwards (NDFs), which allow the investor to bet that a currency will appreciate or depreciate in a given time. However, in many cases, making any return on this type of investment requires both speed and large amounts of capital, making it impractical for many private investors.
Trade related currencies
Some currencies track together in their relative values, meaning that you can indirectly invest in one currency by trading another. For example, the Chinese Yuan and the Mexican Peso appear to move together for several reasons. Here, an investor could invest in the Peso using a forward contract or another trading instrument. By doing so, they would be indirectly betting that the Yuan (and thus the Peso) would increase in value.
Invest in Chinese currency ETFs
An exchange traded fund (ETF) is mainly a collection of stocks traded like a single stock. Certain ETFs are focused on the values of a currency, and there are several that focus directly on the Yuan.Invest in these ETFs to add Yuan investments to your portfolio without the risk or trouble of direct investment.
Ways to Invest in Chinese Stocks
If you want to invest in Chinese stocks, there are three ways to do so:
1. American Depository Receipts and Chinese A-shares
Some major Chinese companies are traded on major U.S. stock exchanges as American Depositary Receipts (ADRs).
Each ADR represents a share or fraction of a share of foreign stock.
According to the U.S.-China Economic and Security Review Commission, there were 156 Chinese companies listed on U.S. exchanges as of February 2019. Companies include:
- Alibiba Group Holdings (BABA)
- Weibo Corporation (WB)
- Concord Medical Services Holdings Limited (CCM)
- China Automotive Systems (CAAS)
- Acorn International, Inc (ATV)
You can also buy A-shares, meaning shares from companies from mainland China listed on the Shanghai and Shenzhen Stock Exchanges.
To invest in these companies, you can purchase shares of ADRs through a U.S. broker.
2. Invest through a market maker or affiliate firm
Not all Chinese companies trade on U.S. stock exchanges. The majority are only traded on Chinese exchanges instead.
The three major exchanges are:
- Hong Kong Stock Exchange: Over 2,400 companies are listed on the Hong Kong Stock Exchange, with a total market capitalization of over $38.2 trillion.
- Shanghai Stock Exchange: The Shanghai Stock Exchange was established, and is the second largest stock exchange in the world in terms of capital raised.
- Shenzhen Stock Exchange: Over 2,200 companies are listed on the Shenzhen Stock Exchange, and over 10,600 securities.
To purchase stocks on a foreign exchange, you have to contact your brokerage firm and see if they allow foreign investing.
If so, the firm will work with a market marker, also known as an affiliate firm.
The market maker is a firm located in the country where you want to invest that will facilitate the transaction.
3. Purchase shares of mutual funds or exchange-traded funds
Another way to invest in Chinese stocks is to invest in mutual funds or exchange-traded funds (ETFs) that track the Chinese stock exchanges.
By investing in mutual funds and ETFs, you can instantly diversify your portfolio while getting exposure to foreign companies, spreading out your investment across hundreds or even thousands of companies.
Mutual funds and ETFs don’t have to be actively managed, so they tend to have lower costs than other investments, and they have less risk than investing directly overseas.
When comparing funds, look for a mutual fund or ETF that tracks the Chinese indices. Some popular choices include:
- Shanghai Stock Exchange Composite Index: This index tracks the performance of all A-shares and B-shares on the Shanghai Stock Exchange.
- Shanghai Shenzhen CSI 300 Index: The Shanghai Shenzhen CSI 300 Index is made up of 300 A-share stocks on the Shanghai or Shenzhen exchanges.
- Shenzhen Composite Index: This index tracks the performance of all A-shares and B-shares on the Shenzhen Stock Exchange.
Top Chinese Companies To Invest In – Best Chinese Stocks
Our list of Chinese companies to invest in was randomly listed. Also, the market cap and share price attached to each particular Chinese stock are volatile and subject to fluctuation.
Here’s a list of top 21 Chinese companies to invest in:
Top of our list of Chinese companies to invest in, Alibaba Group Holding Ltd is an online e-commerce retailer and China’s largest company by market capitalization. The company controls over 50% of China’s e-commerce market each year.
Alibaba owns the websites of many subsectors: Taobao is the equivalent of second-hand C2C retail platform eBay, Alibaba Cloud is a cloud computing company, and Tmall is a B2C retailer for both Chinese and international businesses.
Throughout the Great Recession, Alibaba withstood the global stock market crash and revenue actually showed growth, possibly showing that it is a stable stock for investment in times of economic hardship. Despite a drop in price at the start of 2020 because of shipment restrictions, Alibaba’s share price has been growing as the economy steadies.
Market cap: $593.7B
Share price: $266.80
JD is Alibaba’s nearest competitor within China’s e-commerce and retail sector, and it is the second-largest online retailer in the country, controlling around 17% of China’s e-commerce market each year. And it ranks as one of the biggest Chinese companies to invest in.
JD invests heavily into its logistic network and development of artificial intelligence, charging third-party companies for its services in robotics and driverless delivery vehicles. It is a very similar provider to the online retailer Amazon, as a Chinese pioneer of fast delivery and a never-ending range of products. Whereas Alibaba’s market share decreased because of restrictions on deliveries, JD controls its own distribution between buyers and sellers, therefore proving more reliable in the short term.
Market cap: $77.25B
Share price: $94.22
Baidu, Inc. is a Chinese multinational technology company specializing in Internet-related services and products and artificial intelligence, headquartered in Beijing’s Haidian District. It is one of the largest AI and Internet companies in the world.
The coronavirus pandemic has had a negative impact on the advertising industry and Baidu’s share price took a large fall at the start of 2020. However, Chinese tech stocks are back bigger and better and they remain one of the best Chinese companies to invest in.
Market cap: $73.887B
Share price: $219.03
NetEase Inc is a creative Chinese technology company that is a pioneer in the video gaming industry. The company provides content and communication services for developing desktop and mobile games. NetEase has also established a joint venture with Blizzard Entertainment, a US-owned video game developing company, in order to produce local versions of some of the most popular video games around the world.
These include World of Warcraft, Hearthstone and StarCraft II. The company is creating its first virtual reality multiplayer online game, which is an enormous opportunity to progress China’s tech industry. NetEase owns one of the leading companies within the e-learning sector in China, a spinoff called Youdao.
Market cap: $59.7B
Share price: $122.36
#5 Weibo Corp
Weibo Corporation is a social networking company that specializes in microblogging. Its main Sina Weibo service shares similarities with Twitter and Instagram. They’ve created a stellar profitable margin on their record that makes them one of the best Chinese companies to invest in.
Weibo enables its advertising and marketing customers to promote their brands, products, and services to users. Weibo offers a wide range of advertising and marketing solutions to companies of all sizes. The company generates a substantial majority of its revenues from the sale of advertising and marketing services, including the sale of social display advertisements and promoted marketing offerings.
However, Weibo’s share price is a bargain and can jump at the release of certain news and updates, so it is better to invest in this Chinese stock now, while it is at a cheap price.
Market cap: $7.6B
Share price: $49.49
Tencent Holdings Ltd is a conglomerate holding company within China’s tech industry. It is the world’s largest video game publisher and owns China’s top mobile messaging platform, WeChat.
Tencent’s sudden growth could be attributed to the development of its own online payment service, WeChat Pay, which has an almost equal revenue in digital payments as Alibaba’s own service, Alipay.
It also holds shares in Tencent Music Entertainment, a digital music service, and Tencent Cloud, which is the second-largest cloud storage service in the country after Alibaba’s own.
Over the last 15 years (since its IPO in 2004), Tencent has delivered revenue and profit growth at a stellar compound annual rate of 46% and 42%, respectively. Their immense growth and scalability plan makes them one of the Chinese companies to invest in.
Market cap: $639.1B
Share price: $736.25
Often referred to as the ‘Netflix of China’, iQIYI is one of the largest video streaming services in China. It was founded by Baidu, who currently owns a 56% stake in the company, and it is reported that Tencent is interested in purchasing a stake which led to a surge in iQIYI’s share price upon news release.
Owing to the rise of streaming stocks within recent years and especially throughout the pandemic, iQIYI is a safe option for investment.
With an increasing number of subscribers of about 105 million as of January 2021. This figure is almost double the reported figure from previous years, showing Netflix that iQIYI is a serious competitor.
Market cap: $18.5B
Share price: $23.36
#8 Nio Inc.
Nio Inc. is a Chinese automobile manufacturer with its headquarters in Shanghai, specializing in designing and developing electric vehicles. The company is also involved in the FIA Formula E Championship, although NIO has ended funding the team after selling to Lisheng Racin.
Recently Nio has seen an increase in popularity with investors that helped it get on a total of 35 hedge fund portfolios. To add to that, and the aggregate value of the hedge fund holdings surged to $1.40 billion from $567.82 million at the end of June. This landed the company a position in the 8th position of the 10 best Chinese companies to invest in.
Market cap: $67.31B
Share price: $41.08
#9 Bilibili Inc.
Bilibili is also on our list of top Chinese companies to invest in now. Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday life of the young generations in China. With their initial website launch in June 2009 and official branding as ‘‘Bilibili’’ in January 2010, they have grown from a content community inspired by anime, comics, and games (ACG) into a full-spectrum video community covering an array of interests from lifestyle, games, entertainment, anime and tech & knowledge to many.
Financially, the company has been excelling steadily hedge fund ownership has risen for four consecutive quarters, increasing by 106% during this year. Yiheng Capital, managed by Jonathan Guo is the biggest holder of Bilibili stock with a total value of $277 million.
Market cap: $41.16 B
Share price: $116.66
#10 Yum China Holdings
YUMC ranks among the best Chinese companies to invest in. Yum is a fast-food company in China that, in 2016, was spun off Yum! Brands – the company that manages brands such as KFC, Taco Bell, and Pizza Hut. Research shows that in the 2020’s second quarter, YUMC was found on 35 hedge fund portfolios. The current number is 39, which means that Yum is at its all-time high bullish number of hedge fund positions.
According to Insider Monkey’s hedge fund database, Guardian Capital’s GuardCap Asset Management has the number one position in Yum China Holdings, Inc. (NYSE:YUMC), worth close to $178.2 million, comprising 6.8% of its total 13F portfolio.
Market price: $24.585B
Share price: $59.13
#11 New Oriental Education & Technology Group Inc.
More commonly known as just “New Oriental”, this company is a provider of educational services, including pre-school education, general courses for students of various age levels, online education, overseas study consulting, and textbook publishing.
As the biggest provider of private educational services in China, New Oriental offers education for a lifetime, teaching skills that give students a vital competitive advantage in the workplace and help enhance their quality of life. Their wide range of educational programs, services, and products includes English and other foreign language training, overseas and domestic test preparation courses, all-subjects after-school tutoring, primary and secondary school education, educational content and software, and online education.
For the third fiscal quarter of 2021, New Oriental reported net revenues of US$1,190.5 million, representing a 29.0% increase year-over-year.
Market cap: $27.60B
Share price: $16.10
#12 TAL Education Group
When talks about the best Chinese stocks to buy now, TAL Education normally gets involved in the conversation. TAL Education Group offers some of the go-to comprehensive after-school tutoring services in various subjects. Since its establishment, TAL has been committed to integrating the internet and technology into education to deliver a better study experience for children.
Tiger Global Management has the top position in hedge funds for TAL with $438 million in holdings. It is also found on Ray Dalio’s list of top growth stocks, underlining that this is another company in the education sector that investors have been enthusiastic about in Q3. Bridgewater raised its stake in the company by 53%, valued at $52 million at the end of September.
Market cap: $61.06
Share price: $61.06B
XPeng is a Chinese electric vehicle manufacturer. The company is headquartered in Guangzhou, with offices in Mountain View, California in the US, and is publicly traded on the New York Stock Exchange.
The Chinese electric-car market is a minefield for investors, with shares having skyrocketed. The stock of Nio (NIO) – Get Report, for instance, is up almost 1,000% in 2020. Warren Buffett-backed BYD Co. (BYDDY) has seen its shares almost quadruple in a year.
XPeng (XPEV) – Get Report shares currently present a reasonable entry point. The company priced a US$2.2 billion follow-on offering at US$45 per share on Dec. 11, which has temporarily depressed the stock. It’s down from a peak of US$53.38 on Nov. 23, trading at US$44.43, so slightly below the price of that secondary. Not that its gains are restrained. Its shares shot up 67% on its US$1.5 billion U.S. market debut in August, and are now up 196% from the US$15 offer price.
According to Yahoo Finance, Wall Street analysts expected a loss of 12 cents per share on revenue of $411.38. Eventually, XPeng lost 15 cents per share, while the revenue grew 345.5 per cent to $437 million. Sales of XPeng vehicles accounted for 96 percent of the total revenue, or $419.2 million.
Market cap: $26.72B
Share price: $33.30
Pinduoduo Inc. is the largest agriculture-focused technology platform in China. It has created a platform that connects farmers and distributors with consumers directly through its interactive shopping experience. In 2019, nearly 600,000 merchants sold farm produce through Pinduoduo.
Pinduoduo, one of the biggest Chinese companies to invest in is still experiencing vigorous growth in user numbers, as it penetrates the Chinese hinterland. Active buyers rose 36.4% year on year in the third quarter to 731.3 million people, while total revenue rose 89.1%.
Engagement in terms of time spent on the site has grown during the pandemic. Its Duo Maicai service is a next-day pickup feature for groceries at cheaper prices, with online grocery expected to rise from 20% market share now to close to 50% by 2025.
The stock was added to the MSCI Asia ex-Japan index last year, giving it a beta-buying boost from index trackers. Shares are up 274% year to date.
Market cap: $169.98B
Share price: $138.61
TSMC pioneered the pure-play foundry business model when it was founded in 1987, and has been the world’s largest dedicated semiconductor foundry ever since.
The Company supports a thriving ecosystem of global customers and partners with the industry’s leading process technologies and portfolio of design enablement solutions to unleash innovation for the global semiconductor industry. With global operations spanning Asia, Europe, and North America, TSMC serves as a committed corporate citizen around the world.
TSMC deployed 281 distinct process technologies and manufactured 11,617 products for 510 customers in 2020 by providing the broadest range of advanced, specialty, and advanced packaging technology services. TSMC is the first foundry to provide 5-nanometer production capabilities, the most advanced semiconductor process technology available in the world. The Company is headquartered in Hsinchu, Taiwan.
Year-over-year, first-quarter revenue increased 16.7% while net income and diluted EPS both
Increased 19.4%. Compared to fourth quarter 2020, first-quarter results represented a 0.2%
increase in revenue and a 2.2% decrease in net income. All figures were prepared in accordance
with TIFRS on a merged basis. In US dollars, first-quarter revenue was $12.92 billion, which increased 25.4% year-over-year and increased 1.9% from the previous quarter. The gross margin for the quarter was 52.4%, operating margin was 41.5%, and net profit margin was 38.6%.
Market cap: $615.276B
Share price: $118.64
#16 Melco Resorts & Entertainment
Next on our list of top Chinese stocks to buy now is Melco Resorts and Entertainment stocks. Melco Resorts & Entertainment Limited (“Melco”) is a developer, owner, and operator of casino gaming and entertainment casino resort facilities in Asia.
Melco’s unique blend of design, entertainment, and quality sets the company apart. From the start in 2004, they took a pioneering approach, believing that there was so much more to offer guests beyond simply gaming. Currently, they collaborate with some of the world’s greatest talents in entertainment, architecture, cuisine, art, wellness, sport, and hospitality to deliver incomparable experiences.
Total operating revenues for the fourth quarter of 2020 were US$0.53 billion, representing a decrease of approximately 64% from US$1.45 billion for the comparable period in 2019. The decrease in total operating revenues was primarily because of softer performance in all gaming segments and non-gaming operations because of the COVID-19 pandemic, which resulted in a significant decline in inbound tourism throughout 2020 which continued through the fourth quarter. Operating loss for the fourth quarter of 2020 was US$144.8 million, compared with operating income of US$173.4 million in the fourth quarter of 2019.
Melco Resorts & Entertainment Limited (Nasdaq: MLCO), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today announces that it will furnish its unaudited financial results for the first quarter of 2021 on Form 6-K with the U.S. Securities and Exchange Commission (“SEC”) on Wednesday, April 28, 2021, to be followed by a conference call on the same day at 8:30 a.m. Eastern Time (or 8:30 p.m. Hong Kong Time).
Market cap: $8.95B
Share price: $18.77
#17 China Mobile
The leading telecommunications service provider in the mainland of China, the Group provides full communications services in all 31 provinces, autonomous regions, and directly administered municipalities throughout the mainland of China and in Hong Kong Special Administrative Region, and boasts a world-class telecommunications operator with the world’s largest network and customer base, a leading position in profitability and market value ranking. Its businesses primarily comprise mobile voice and data business, wireline broadband, and other information and communications services.
In the first quarter of 2021, the Group continued to devote concerted efforts to promoting digitalized and intelligent transformation and achieving high-quality development. Placing a special focus on its “4×3” strategic core and fully implementing the “5G+” plan, it maintained stable growth in key business performance indicators and delivered sound development momentum, taking solid steps towards becoming a world-class enterprise by building a dynamic “Powerhouse”.
The Group recorded a total of around 940 million mobile customers as of 31 March 2021. Among them, 4G customers, 5G package customers, and 5G network customers amounted to 788 million, 189 million, and 92.76 million respectively, and this set of numbers has shown the continuous optimization of the Group’s customer structure. During the first quarter of the year, the data traffic business maintained good growth momentum with handset data traffic recording a year-on-year increase of 37.3% and handset data DOU reaching 11.2GB. Total voice usage increased by 8.3% year-on-year to 716.6 billion minutes. Total SMS usage dropped by 12.6% year-on-year to 211.1 billion messages.
Following the full implementation of the “5G+” plan, the Group stimulated the consumption of information and communications services with mobile ARPU increasing by 0.9% year-on-year to RMB47.4 for the first quarter of the year. The Group will continue to develop its scale-based and value-oriented business operating system and strive to achieve stabilized and rallied mobile ARPU for the full year of 2021.
Market cap: $1.07T
Share price: 52.25HKD
#18 CNOOC (CEO)
CNOOC is a Chinese oil exploration and production company that has exclusive rights to negotiate offshore production sharing contracts with international oil companies in China. Analyst Matty Zhao says CNOOC management seems confident that it can grow output, despite a lower-priced oil environment.
Zhao says CNOOC’s Bohai Bay and the eastern South China Sea production has a break-even cost of $25 per barrel, an extremely competitive rate in the international market. They are one of the best Chinese companies to invest in as they hold a good market cap.
CNOOC also holds a 25% interest in the Guyana field, which began production in late 2019. Bank of America has a “buy” rating and a $131.48 price target for CNOOC stock.
Market cap: $53.213B
Share price: $121.76