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Scoop Up These 4 Chinese Stocks Under $13 By StockNews

© Reuters. Scoop Up These 4 Chinese Stocks Under $13

The rapid digitalization of its businesses, a rise in consumer spending, and political tensions with Western countries have motivated China to invest heavily in its technology and e-commerce sectors. Given this backdrop, we think reasonably priced Chinese stocks Viomi (VIOT), China Online Education (COE), LightInTheBox (LITB), and China Automotive (CAAS) are well-positioned to deliver significant returns in the near-term. Let’s discuss these names.China was the first country to recover from the COVID-19-pandemic-led recession, driven by a surge in retail sales, industrial production and investment in fixed assets. The country reported 18.3% GDP growth in the first quarter of 2021, its highest since 1992. As the world’s largest internet market, China has witnessed the rapid digitalization of various businesses during the pandemic. However, policy tensions between the U.S. and China have greatly affected the technology and supply chain sectors in China, and caused some Chinese stocks trading in U.S. markets to retreat.

However, in its five-year plan draft, China has announced a focus on its technology sector and plans to boost domestic production to combat competition from Western countries. This, combined with rising consumer demand, should keep driving China’s economic growth.

Given this backdrop, we believe small- and micro-cap Chinese stocks Viomi Technology Co., Ltd (NASDAQ:), China Online Education Group (NYSE:), LightInTheBox Holding Co., Ltd. (LITB), and China Automotive Systems, Inc. (NASDAQ:) have the potential to deliver solid upside in the coming months.

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