Tech integration and the adoption of cloud-based solutions contributed significantly to the Chinese economy’s V-shaped recovery from its COVID-19 pandemic-driven recession. With digitization moving forward quickly, we believe Chinese software companies Borqs Technologies (BRQS) and Onion Global (OG) are well-positioned to continue growing. But which of these stocks is a better buy now? Read more to find out.Borqs Technologies, Inc. (BRQS) is a China-based company focused on software and development services. The company operates through two segments: Mobile Virtual Network Operator (MVNO) and Connected Solutions. Onion Global Limited (OG) offers a platform that incubates, markets, and distributes a wide range of fashionable and future brands in China and in the global market. It is headquartered in Guangzhou province in China.
With continuing digital transformation and accelerated adoption of cloud computing, software companies are investing heavily to deliver advanced solutions and strengthen their market position. China, which hosts the world’s largest internet market, is expected to lead the global digital transformation. The Chinese operating systems and productivity software publishing market is projected to grow at a 29.7% CAGR over the next six years to $4.70 billion. Thus, Chinese software stocks BRQS and OG should benefit in the coming years.
BRQS’ share price has slumped 3% over the past month, while shares of OG have lost 38.8% over the period. Also, BRQS has lost 11.4% over the last five days compared with OG’s 8.5% decline. But in terms of intraday performance, BRQS is the clear winner with 9.3% gains versus OG’s 1.8%.