3 Chinese Stocks Still Thriving in China's Struggling Economy

Market Overview - Chinese stocks have lost momentum after an initial recovery in early 2023, with investors looking for more government action to stimulate the economy and property market [1] - The iShares MSCI China ETF (NASDAQ:MCHI) saw a year-to-date increase of over 16% through May 17, but has since dropped approximately $4.40 (9%) in the following 40 days due to limited government intervention [1] Company Performance Yum China Holdings (YUMC) - Yum China reported Q1 2024 results with total revenues reaching an all-time high, and core operating profit showing modest growth from last year's high base [3] - The company plans to expand its store count to 15,000, having received 26 out of 30 analyst ratings as a Buy with a target price of $51.14, which is 62% higher than its current trading price [3] H World Group (HTHT) - H World Group operates 9,817 hotels and reported a 17.8% increase in revenues for Q1 2024, totaling $731 million, driven by higher occupancy rates and average daily rates [5] - The company opened 569 hotels in Q1 2024, more than double the number from Q1 2023, and has a development pipeline of 3,138 hotels, a 36% increase from the previous year [5] PDD Holdings (PDD) - PDD Holdings is favored by analysts, with 96% of 49 analysts rating it a Buy, despite concerns over potential U.S. tariffs affecting its valuation [6] - The stock trades at 13 times its expected 2024 earnings, which is about half the average for Nasdaq 100 stocks, reflecting investor caution due to regulatory risks [7]