5 Best Chinese Stocks To Buy Right Now

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1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 116

Alibaba Group Holding Limited (NYSE:BABA) ranks 1st on our list of the best Chinese stocks. While Alibaba remains a hedge fund favorite, Macquarie downgraded the stock to Neutral on February 8, citing the company’s strategy of balancing defense and expansion, which is seen as potentially limiting earnings upside in the near term. The analysts noted that Alibaba’s management has committed to increasing investments in 2024 to defend its market leadership, leading to a more aggressive spending approach. As a result, Macquarie has reduced its adjusted EBITA estimates and lowered the target price on Alibaba’s stock by 4% to $85.40.

According to Insider Monkey’s fourth quarter database, 116 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA), compared to 110 funds in the last quarter. 

L1 Long Short Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”

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