Published on 14 Oct 2023 on Insider Monkey via Yahoo Finance

11 Cheap Chinese Penny Stocks to Buy According to Hedge Funds

In this article, we will take a look at the 11 cheap Chinese penny stocks to buy according to hedge funds. To see more such companies, go directly to 5 Cheap Chinese Penny Stocks to Buy According to Hedge Funds.

Chinese stocks rebounded this year amid a boom in tourism-related revenue and on hopes that the Chinese government will take steps to spark growth in the economy. Consistent hammering of stocks in China have made equities’ valuations attractive and long-term analysts believe now is the time to pile into strong Chinese stocks that are undervalued. MSCI China, which includes Hong Kong stocks, trades at just 10.8 times the next 12 months’ earnings. The collapse of the property sector and the Chinese government’s incessant crackdown against tech companies are some of the reasons why investors have been wary of investing in the country. But some analysts believe these crackdowns cannot go on forever and Chinese stocks are undervalued as compared to US stocks. Another factor that could help Chinese stocks is a weakening dollar. A Wall Street analysis said that China would gain from the weakening dollar. The report quoted Gustavo Medeiros, head of research at Ashmore Group, who said:

“There’s a strong case to be made that the dollar has peaked and already started to decline. When the dollar weakens, it typically becomes a virtuous circle of inflows and lending [to emerging markets].”