A host of China stocks are recommended by investment analysts whether or not the economy gets a boost from measures taken this week to boost the sluggish domestic economy there. On Tuesday, the People’s Bank of China announced a series of steps designed to lift the country’s slumping economy. Policies introduced by the central bank included slashing its reserve requirement ratio — the amount of cash banks need to hold — to boost lending, and cutting other corporate and household rates, including existing mortgages. Stocks in China rose in response, with the CSI 300 Index climbing 4.3% Tuesday, its best day since July 2020. Hong Kong’s Hang Seng Index also climbed more than 4% Tuesday. But whether or not the latest policy steps succeed, CNBC Pro screened for China stocks that analysts praise regardless of the pace of economic growth at home. We screened for stocks meeting the following criteria: Member of the SPDR S & P China ETF , which tracks publicly traded companies domiciled in China available to foreign investors Market capitalization of at least $1.5 billion Covered by at least eight analysts Buy ratings from at least 55% of those analysts Upside to average price target of at least 20% Shares of biopharmaceutical firm Structure Therapeutics are up about 4% this year. The company’s lead pipeline asset, GSBR-1290, is an oral GLP-1 treatment similar to diabetes and weight loss drugs such as Ozempic and Wegovy. Structure Therapeutics currently has a market capitalization of $2.5 billion. All of the analysts covering the stock rate it buy, and the upside to the consensus price target is around 104%. On Sunday, Morgan Stanley analyst Terence Flynn initiated research coverage of the stock with an overweight rating and $118 price target, implying that shares could soar 168%. “Based on Ph1/2a data, we believe GSBR1290’s profile is competitive to that of other oral diabesity drugs on the market (i.e. Novo’s Rybelsus) and in development (i.e. LLY’s Orforglipron in Ph3). We expect Ph2b obesity data for GSBR-1290 by YE25, representing the next catalyst for the program,” Flynn wrote. “We see room in the $100bn+ diabesity market for orals and injectables.” Another stock that turned up was PDD , the parent company of e-commerce platform Temu. The company’s market capitalization is around $158 billion. About three quarters of analysts covering PDD rate it a buy, and the stock could climb roughly 43% based on analysts’ consensus price target. Shares are down 22% this year and plummeted more than 28% in a single day in August due to disappointing second-quarter results. Despite this, CoreValues Alphan founder and portfolio manager Ben Harburg told CNBC’s ” Squawk Box Asia ” last month that he’s still bullish PDD over the long term . Over a long time horizon, “this business is incredibly strong,” Harburg said. “It is not just doing well in China, but obviously dominating … [in] emerging and mature markets as well,” he said. The investor believes that PDD will be “edging back upward” in the months to come. On Tuesday, after the announcement of the latest policies to revive the flagging China economy, PDD shares in the U.S. jumped more than 11%. Before that, more bad news had emerged for the company. A new proposed rule from the Biden administration designed to target companies that “overuse and abuse” a U.S.-China trade loophole drove shares lower earlier in September. Other names on the list of favored China stocks included online learning and tutoring provider TAL Education Group and digital shipping platform Full Truck Alliance .
