Which Chinese stocks to buy as we enter 2022?

Highlights

• The US Securities and Exchange Commission (SEC) has been concerned about the Chinese companies listed in the United States, especially those structured as variable interest entities (VIE).
• A Chinese auto company mentioned here saw its total revenue rise by 116.6 per cent year-over-year (YoY) in its latest quarter.
• An eCommerce stock listed below posted an increase of 62 million YoY in its annual active consumers worldwide.

The US Securities and Exchange Commission (SEC) has been concerned about the Chinese companies listed in the United States, especially those structured as variable interest entities (VIE).

The regulator has mandated certain regulatory policies like ownership disclosure and audits to protect investors’ interests.

Amid this development, some North American investors have shown interest in Chinese companies that can note a boost in their stock performance next year.

Also read: How the omicron variant can impact Canadian stock markets

So, here are five Chinese stocks listed on North American markets that you can explore in 2022.

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1. Alibaba Group Holding Ltd (NYSE:BABA, BABA:US)

The ecommerce stock listed on the NYSE closed at US$ 123.60 apiece on Monday, December 6, up by more than 10 per cent. It clocked a 52-week high of US$ 274.29 on February 16, 2021.

A well-known Chinese ecommerce company, Alibaba Group Holdings Ltd saw its revenue increase by 29 per cent year-over-year (YoY) to US$ 31.14 billion in the second quarter of fiscal 2022.

The ecommerce giant recorded a net income of US$ 833 million in the latest quarter.

Alibaba Ecosystem saw 1.24 billion annual active consumers worldwide for the 12 months ending on September 30, which reflected a YoY growth of 62 million.

2.     HUYA Inc (NYSE:HUYA, HUYA:US)

The gaming stock closed at US$ 7.07 apiece on December 6, up by nearly 10 per cent. It hit a 52-week high of US$ 36.33 on February 16, 2021.

A game live-streaming firm, Huya Inc, reported a YoY surge of 5.7 per cent in its total revenue to US$ 461.8 million in the third quarter of fiscal 2021. Its net income also increased to US$ 81.4 million in the latest quarter.

3. JD.com Inc (NASDAQ:JD, JD:US)

JD.com Inc, also a Chinese ecommerce company, saw its revenue soar by 25.5 per cent YoY to US$  33.9 billion in Q3 FY2021.

Its annual active customers account reached 552.2 million in the 12 months ending September 30, 2021, a YoY surge of 25 per cent.

Last month, on November 8, JD.com said that it has employed ZW Data Action Technologies Inc to provide specialized business expansion and customer services for its WanDianBao business.

JD stock closed at US$ 75.19 apiece on December 6, down by roughly four per cent. It spiked by almost one per cent in the last six months.

Also read: 7 Canadian stocks to buy at discount amid Omicron selloff

4.     Pinduoduo Inc (NASDAQ:PDD, PDD:US)

A provider of agricultural and interactive commerce platform, Pinduoduo Inc saw its revenue expand by 51 per cent to US$ 3.33 billion in the third quarter of fiscal 2021.

Its average monthly users grew by 15 per cent YoY to 741.5 million in the latest quarter.

PDD stock closed at US$ 56.01 on December 6, up by almost three per cent. Its stock hit a 52-week high of US$ 212.5965 on February 16, 2021.

5.     Nio Inc (NYSE:NIO, NIO:US)

Nio Inc, a designer and manufacturer of smart electric vehicles, saw its total revenue rise by 116.6 per cent to US$ 1.52 billion in the third quarter of fiscal 2021.

Its recorded vehicles sales of US$ 1.34 billion in the latest quarter, a notable growth of 102.4 per cent YoY.

The automobile stock hit a day high of US$ 33.32 on December 6 and closed at US$ 32.34 apiece, up by roughly six per cent. It clocked a 52-week high of US$ 66.99 on January 11, 2021.

Also read: 3 Canadian penny stocks to buy before Christmas holidays

Bottom line

Chinese companies listed on North American markets have been going through a rough patch due to constant regulatory warnings from Chinese authorities.

Despite recent decline in their stock prices, some China-based companies post a robust financial performance. Such companies could go on to gain momentum in the future, considering their future regulatory and stock listing statuses.