48 China Stocks 10x or More In The Past 10 Years

Alvin recently posted about multibagger US stocks separately and we considered analyzing China stocks in a similar fashion.

We discovered that out of 7,962 China stocks, 48 delivered returns of 10x or more in the past 10 years. This includes stocks from three markets: Shanghai, Shenzhen, and Hong Kong, amounting to approximately 0.6% of the total stocks.

In contrast, the U.S. had 82 out of 6,422 stocks achieving 10x or greater returns during the same timeframe, equating to a 1.3% success rate.

However, before underestimating the potential of Chinese stocks, it's crucial to note that these stocks experienced a three-year downturn, while U.S. stocks are nearing all-time highs. In this context, a 0.6% success rate is commendable. Additionally, there's a possibility that Chinese stocks could offer more 10x opportunities than their U.S. counterparts if the overall market sentiment improves.

We will focus on the five largest market cap stocks which foreign investors can buy. This selection will provide an insight into the types of stocks that have achieved such returns. The full list will be available at the end of this post.

#1 Kweichow Moutai (SSE:600519) +1,819%

Kweichow Moutai doesn’t require an introduction. This iconic fiery spirit has become a symbol of China, and we have previously covered this stock in more detail.

Over the past decade, the stock has yielded a return of 1,819%, or 18-fold. It now ranks as the second-largest stock in China by market capitalization, trailing only behind Tencent.

Moutai's revenue grew by 18% compared to the previous year, and its profit margin remains remarkably high at 51%. Despite this, the stock experienced a 1% decline even after accounting for dividend distributions.