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Looking for ideas on how to find potentially undervalued stocks? If so, you may be interested in this list.

We ran a screen on US-traded stocks of Chinese-based companies for those trading at steep discounts to even their lowest analyst target prices. Because target prices tend to be inflated due to analyst bullishness, we only considered the lowest, most pessimistic analyst target price. Also, for companies with sufficient coverage, we only included those with 5 or more target prices.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by target price.

1. China Kanghui Holdings (NYSE:KH): Develops, manufactures, and markets orthopedic implants and associated instruments. Market cap of $346.98M. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $19.92. This implies a current upside of 34.05% from current levels around $14.86. The stock is a short squeeze candidate, with a short float at 11.19% (equivalent to 30.59 days of average volume). The stock has lost 18.97% over the last year.

2. AsiaInfo-Linkage,Inc. (NASDAQ:ASIA): Provides telecommunications software solutions and information technology products and services to telecommunications carriers and other enterprises in the People's Republic of China. Market cap of $546.74M. Of the 15 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a current upside of 31.58% from current levels around $7.60. The stock is a short squeeze candidate, with a short float at 24.12% (equivalent to 11.48 days of average volume). The stock has performed poorly over the last month, losing 12.94%.

3. Sohu.com Inc. (NASDAQ:SOHU): Engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Market cap of $1.87B. Of the 17 analysts that have set a target price on the stock, the lowest price target stands at $62.00. This implies a current upside of 25.97% from current levels around $49.22. Might be undervalued at current levels, with a PEG ratio at 0.65, and P/FCF ratio at 8.65. The stock has lost 27.17% over the last year.

4. TAL Education Group (NYSE:XRS): Provides K-12 after-school tutoring services in the People's Republic of China. Market cap of $775.97M. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $12.60. This implies a current upside of 23.89% from current levels around $10.17. The stock has lost 36.79% over the last year.

5. Changyou.com Limited (NASDAQ:CYOU): Develops and operates online games in the People's Republic of China. Market cap of $1.23B. Of the 18 analysts that have set a target price on the stock, the lowest price target stands at $29.00. This implies a current upside of 23.46% from current levels around $23.49. The stock has lost 18.3% over the last year.

6. Hollysys Automation Technologies, Ltd (NASDAQ:HOLI): Provides automation and control technology and applications in the People's Republic of China. Market cap of $457.30M. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a current upside of 21.80% from current levels around $8.21. The stock is a short squeeze candidate, with a short float at 15.83% (equivalent to 18.65 days of average volume). The stock has lost 48.91% over the last year.

7. Spreadtrum Communications Inc. (NASDAQ:SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap of $710.80M. Of the 16 analysts that have set a target price on the stock, the lowest price target stands at $17.50. This implies a current upside of 16.82% from current levels around $14.98. It's been a rough couple of days for the stock, losing 26.78% over the last week.

*Analyst target price data sourced from Thomson/First Call (via Yahoo! Finance), all other data sourced from Finviz.

Source: 7 Chinese Stocks Deeply Discounted From Target Price