12 Cheap Chinese Stocks to Buy According to Hedge Funds

2. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 86

Forward P/E Ratio: 8.46

PDD Holdings Inc. (NASDAQ:PDD) is a holding company with a portfolio of businesses. Pinduoduo and Temu are two of the most famous e-commerce brands of PDD. The company has built a network of sourcing, logistics, and fulfillment capabilities that support its underlying businesses.

The company is working with high-quality merchants worldwide to improve its customized fulfillment solutions and enhance its supply chain, as the competition in the e-commerce market is getting intense. PDD Holdings Inc. (NASDAQ:PDD) is currently operating businesses in over 79 markets worldwide. As PDD senses growth opportunities in the sector, it is penetrating new markets. Temu is expanding rapidly in Europe and North America and has the potential to capture a large portion of the online global retail market. PDD focuses on small and medium businesses, which allows it to make cheap product listings on its platforms and attract a higher volume of consumers.

In Q2 2024, the company reached over 167 million monthly active customers, of which 50 million are based in the U.S. The company’s revenue soared over 89% year-over-year to $13.63 billion in Q2 2024. Revenues from the marketing services and others were up 29% from a year ago, while revenues from transaction services were up 234%.