I just noticed that the Chinese stock market is attracting more attention from Thai investors. The problem is, many people still do not understand what kind of structure this market has and which types of Chinese stocks they should choose to invest in.

Let's start with the basics. The Chinese stock market is divided into four main markets: the Shanghai Stock Exchange (SSE), the Shenzhen Stock Exchange (SZSE), the Beijing Stock Exchange (BSE), and the Hong Kong Stock Exchange (HKEX). Each market has its own characteristics. SSE is the largest market with high liquidity, while SZSE focuses on technology and innovation companies. The Hong Kong market is more accessible to foreign investors.

Regarding investing in Chinese stocks, it’s important to know the different types, such as A-shares (mainly for Chinese investors), B-shares (accessible to foreigners), H-shares (Chinese companies listed in Hong Kong), and ADRs (listed in the U.S.). For Thai investors wanting to invest in Chinese stocks, choosing H-shares or ADRs might be more convenient because they have high liquidity and fewer restrictions.

Now, let’s look at which Chinese stocks are worth investing in. The market’s flagship is Tencent, a giant in Super Apps and gaming. Its current price is reasonable, with a P/E ratio of about 21.5 times, up 16.8% this year. Alibaba, a leader in e-commerce, is restructuring to improve efficiency. Its price is quite attractive, with a P/E of only 17.1 times.

In the energy industry, BYD, the world’s largest EV manufacturer, has a cost advantage because it produces its own batteries. BYD’s strength lies in expanding internationally. Although profits are being squeezed, it remains an interesting choice. CATL, the world’s top EV battery producer, faces similar challenges with price competition but continues to lead with technology.

Talking about technology, SMIC, China’s chip manufacturer, benefits from increasing domestic chip demand. Despite trade restrictions from the U.S., it can still grow in the mid-tier tech market. LONGi, a solar panel manufacturer, faces supply oversupply challenges but, in the long run, benefits from the clean energy megatrend.

Meituan is also interesting—a local Chinese Super App with high growth, delivering a year-to-date return of 45.5%. Although its P/E is high, its international expansion could further accelerate growth.

Overall, the current strategy for investing in Chinese stocks should include stable market leaders like Tencent and Alibaba, along with future industries such as clean energy and semiconductors supported by the Chinese government. This is the formula for investors seeking growth aligned with China’s new economic direction. The Chinese stock market remains an attractive option for international portfolios.