11 Chinese Stock Plays On Trade War Weakness

U.S.-listed Chinese stocks have taken a beating in the past six months, with the iShares FTSE/Xinhua China 25 Index (NYSE: FXI) down 11.8% overall in that time. Fears over the negative economic impact of the U.S. trade war with China are weighing on Chinese stocks, and recent rumors that the White House is considering limiting U.S. investment in China are making investors uneasy.

Cheapest China Stocks

For investors who are bullish on China in the long-term, the trade war has created plenty of buying opportunities. The following are 11 U.S.-listed Chinese stocks with market caps of at least $2 billion with the lowest forward PE ratios, according to Finviz:

  1. Sinopec Shanghai Petrochemical Co. ADR (NYSE: SHI), 5.1 forward PE.
  2. China Petroleum & Chemical Corp ADR (NYSE: SNP), 7.4 forward PE.
  3. China Telecom Corporation Limited (NYSE: CHA), 9.1 forward PE.
  4. Vipshop Holdings Ltd - ADR (NYSE: VIPS), 9.2 forward PE.
  5. Momo Inc (NASDAQ: MOMO), 9.7 forward PE.
  6. Huaneng Power International Inc ADR Class N (NYSE: HNP), 10.0 forward PE.
  7. YY Inc (NASDAQ: YY), 10.3 forward PE.
  8. PetroChina Company Limited (NYSE: PTR), 11.3 forward PE.
  9. SINA Corp (NASDAQ: SINA), 13.5 forward PE.
  10. 58.com Inc (NYSE: WUBA), 13.7 forward PE.
  11. Weibo Corp (NASDAQ: WB), 14.7 forward PE.

Benzinga’s Take

Many experts expect the trade war to ultimately be resolved at some point.

If the U.S. and China ultimately reach a trade deal, there could be a huge relief rally in battered Chinese stocks. China remains the world’s largest emerging market economy, with a $15.5-trillion annual GDP, second to only the U.S.

Even amid the trade war, China’s second-quarter GDP growth rate of 6.2% in the second quarter was more than triple the 2% U.S. growth rate. China also has more than four times the population of the U.S., at 1.43 billion.

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