China is shooting for rapid and sustainable growth through government support and restrictions on unusual and non-competitive business practices. As a result, Wall Street analysts expect the stocks of popular Chinese companies JD.com (NASDAQ:JD), Tencent Music (TME), and HUYA (HUYA) to advance in the coming months. Read on, let’s take a closer look at these names.China was the only major economy to report a GDP growth last year, at a time when most economies were grappling with the effects of the COVID-19 pandemic. China has maintained its growth trajectory this year, with record GDP growth of 18.3% in the first quarter versus the same period last year. In fact, China’s GDP growth in the last quarter has been its fastest since 1992.
China has been taking active steps to curb inflation in the country, which soared to multi-year highs in the last quarter. Its Central Bank Governor Yi Gang expects consumer prices to fall in the coming months because the country is taking steps to rein in commodity prices through targeted measures aimed at restricting “abnormal prices” and “malicious speculation,” as well as preventing hoarding and/or speculative trades in the industrial sector.
So, the Chinese economy is expected to generate sustainable growth in 2021. This should drive the performance of established companies JD.com, Inc. (JD), Tencent Music Entertainment Group (NYSE:TME), and HUYA Inc. (HUYA). Wall Street analysts expect these stocks to rally more than 35% over the next 12 months.