5 Best China Stocks to Buy Now

1. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 76 

JD.com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce company. The company made it to our list of the best China stocks to buy now as analysts regard Chinese internet stocks as crucial to the country’s economy in the coming years.

The company posted record sales for Singles Day.

Recently, Goldman Sachs lifted its price target on JD.com, Inc. (NASDAQ:JD) to $123, with a Buy rating on the shares.

Of the 873 hedge funds tracked by Insider Monkey, 76 hedge funds reported owning stakes in JD.com, Inc. (NASDAQ:JD) in Q2, up from 75 in the previous quarter. These stakes are valued at over $10.6 billion.

Arisaig Partners mentioned JD.com, Inc. (NASDAQ:JD) in its Q2 2021 investor letter. Here is what the firm has to say:

“JD.com, for example, continues to display impressive operating momentum, with sales on track to grow around 30% this year by our estimates. Looking longer term, this company is making a credible claim to be the dominant player in Chinese grocery ecommerce, an enormous chunk of overall consumption in China, and the last one yet to move online in a big way. We think that JD has a clear advantage over rivals here thanks to its integrated and fully self-managed logistics capabilities. Whereas an offline big box retailer might have 10-20,000 SKUs, JD offers 8 million. 90% of orders fulfilled by JD Logistics can be delivered on the same day or the next day to 500 million customers. The fact that JD has just 30 days of inventory tells us that this is a highly-optimised fulfilment chain. It is very hard to be both fast and efficient, and in order to achieve this it is necessary to know what inventory to hold in which warehouse, and when to hold it (“right place, right time, right person”), a highly information-intensive challenge. The only other retailer that comes close to being able to manage that level of complexity is Amazon, and indeed these are capabilities that are very hard to replicate, taking decades of painstaking investment, trial and error testing, and data accumulation.

Moreover, far from being some sort of ‘victim’, this company is most likely a beneficiary of tighter regulation in this sector. A recurrent message running through JD’s recent investor day was that of “deep purpose”, the objective being to create shared value for a broader ecosystem of customers, merchants and employees. As we describe in the next section on “Navigating China”, this form of alignment with the strategic objectives of the government is a very China-specific way of conceptualising ESG, and essential for all businesses that operate in this country to get right…” (Click here to see the full text)

You can also take a look at 10 Best European Bank Stocks to Buy Now and 10 Best Real Estate Stocks To Buy Now

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