If you’re looking for the best penny stocks to buy, you’ve got your work cut out for you. Right now, the markets are going through one of their most volatile periods in months. The Russia-Ukraine war, inflation, rate hikes, Wednesday’s Federal Reserve announcement, and, yes, the continuing virus concerns have sent trends awry.
But this doesn’t mean there aren’t ways to make money trading stocks right now. If you can learn how to identify strong trends in the stocks market, it’s that much easier to achieve your goal. Today we look at one of the strongest trends fueling bullishness: China stocks, and I’ll explain why.
China Stocks To Watch
- China SXT Pharmaceuticals (NASDAQ: SXTC)
- iQIYI Inc. (NASDAQ: IQ)
- AnPac Bio-Medical Science Co. Ltd. (NASDAQ: ANPC)
- Meten Holding Group Ltd. (NASDAQ: METX)
- Canaan Inc. (NASDAQ: CAN)
Best Penny Stocks To Buy
Today China stocks are waking things up. One of the biggest reasons for this move has everything to do with the Chinese government’s latest move to help its markets. Chinese and U.S. regulators are making headway in cooperating on a plan for U.S.-listed Chinese stocks.
A Chinese state media report discussed Beijing supporting Chinese stock listings overseas and moving toward more stability in Hong Kong financial markets. Delisting fears in the U.S. had investors skittish about holding companies headquartered or which had exposure to China.
Since this news came out, China stocks and Chinese markets rose sharply on Wednesday. With that, a bright spotlight is now placed on related penny stocks.
China SXT Pharmaceuticals (NASDAQ: SXTC)
One of the examples of how aggressive bearish the trend has been for China is China SXT Pharmaceuticals. Since the beginning of last year, shares of SXTC stock have been under pressure. Continued selling brought it well below the $1 threshold, and its January financing round added more fuel to the fire. Needless to say, as one of the cheapest NASDAQ penny stocks today, this news out of China has breathed new life into SXTC stock.
The Chinese medicine company has gained the attention of the Reddit and Fintwit audience in recent weeks. Earlier this year, China SXT announced that it is now developing and commercializing several products to relieve cough, asthma, and detoxify. According to the company, it expects the annual output of the products (Kuihuapan and Zhudanfen) to reach 300,000 bottles equating to sales of roughly RMB 5 million during its fiscal year ending March 31, 2023.
With a market cap of less than $50 million, SXTC stock is trading at nano-cap levels. Given the excitement surrounding China stocks today, this could be one of the names to watch.
iQIYI Inc. (NASDAQ: IQ)
Shares of the online entertainment company, iQIYI bounced strongly on Wednesday morning. This was mostly thanks to the strong surge in China stocks. iQIYI was one of the darlings of the market early last year before the bearish pressure began impacting Chinese listed names. At one point, IQ stock was trading above $28 per share.
Things have perked up significantly in the stock market today for IQ shares. The company has been frequently compared to other leading streaming platforms like Netflix. It offers a freemium set-up for users as well as touts an active member base in the millions of subscribers in Greater China.
In its last quarterly update, Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI explained that “Our goal is to reach non-GAAP operating break-even for the full year of 2022 and to reach quarterly non-GAAP operating break-even as early as possible, while maintaining our competitive advantage as the industry leader. I am delighted to see that we are moving in the right direction.”
AnPac Bio-Medical Science Co. Ltd. (NASDAQ: ANPC)
Cancer screening and detection company AnPac Bio-Medical followed a similar trend as China SXT. The recent uncertainty surrounding China stocks also made a significant impact on ANPC stock trading this week as shares dipped to new 52-week lows. Regardless of the action in the market, AnPac has remained steadfast in developing its treatment platform.
Its Biochip subsidiary Changwei System Technology received an independent valuation of roughly $90 million. The appraisal was conducted after AnPac’s board approved the company for exploring “strategic alternatives” for Changwei. The subsidiary has also started developing a new biochip for AnPac Bio JV’s cancer treatment. Changwei signed a letter of intent with a life science company, where it will work on a new biochip for an automatic drug injection medical device for diabetes patients.
Given the substantial boost in China stocks and a focus on penny stocks, ANPC is another one of the low-priced names benefiting from the latest uptick in related stocks.
Meten Holding Group Ltd. (NASDAQ: METX)
A rebound in China stocks isn’t the only thing helping certain companies in the stock market today. Cryptocurrencies have also experienced a rebound. The price of Bitcoin, Ethereum & other cryptos jumped during the early morning session on Wednesday. Meten Holdings and similar companies benefited from several bullish trends as a result. The company specializes in technology, and while English Language for Chinese students was its core business model, it isn’t the only thing that the company has focused on.
Blockchain technology is another significant part of its model. This week, the company announced several critical updates related to the digital space. These included a deal for metaverse vocational education and a new strategic alliance to “explore opportunities” in the blockchain and digital currency industries. The cooperation with Global Blockchain Inc. will see the two companies working in several digital asset initiatives, including digital currency mining.
CEO Alan Peng explained, “This cooperation will help us stay informed in the fast-evolving blockchain and digital currency industries and stay close to the industry development trend. Through leveraging this relationship, we are gaining confidence to grow our blockchain and digital currency business and create value for our shareholders.”
METX stock has surged early on Wednesday morning following the headline.
Canaan Inc. (NASDAQ: CAN)
Sticking with the cryptocurrency trend in China stocks, Canaan Inc. caught a much-needed boost in the stock market today. The supercomputing technology company has focused its efforts on chip design for providing energy-efficient equipment for cryptocurrency mining. With the backdrop of negative sentiment in China-based companies and cryptocurrency prices, CAN stock felt the one-two punch this month.
That same one-two punch has helped things this week. Canaan gave an update on some of its recent developments, including its plan to weather the latest storm in COVID quarantines in China. Aside from that, and possibly much more favorable in the market, was news of a share buyback of up to $100 million.
Nangeng Zhang, CEO, also explained, “This new share repurchase program demonstrates our confidence in the Company’s long-term outlook. We remain committed to our diligent and agile operations and believe that we are able to overcome the challenges and make greater achievements.”
Strong moves in the price of Bitcoin and a surge in China stocks have placed a bright spotlight on CAN stock today.
Are China Stocks On Your List Of Penny Stocks To Watch?
Keep in mind that trends like this can be fleeting depending on different headlines that surface. However, there’s much optimism in the stock market today, thanks to these significant headlines. It may not hurt to have some of the China stocks on the radar this week.