In this article, we discuss the 5 Chinese companies listed on NYSE/NASDAQ/AMEX. If you want to read our detailed analysis of these companies, go directly to the 20 Chinese Companies Listed on NYSE/NASDAQ/AMEX.
5. DiDi Global Inc. (NYSE: DIDI)
Number of Hedge Fund Holders: N/A
DiDi Global Inc. (NYSE: DIDI) is ranked fifth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company owns and operates a ride-hailing service in China. The stock has slumped over the past few days amid a Chinese government investigation into the security protocols at the firm.
DiDi Global Inc. (NYSE: DIDI) went public in late June. It has a market capitalization of over $54 billion. The company was founded in 2012.
4. JD.com, Inc. (NASDAQ: JD)
Number of Hedge Fund Holders: 75
JD.com, Inc. (NASDAQ: JD) is one of the largest ecommerce firms in China. It is placed fourth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have returned 11% to investors in the past year.
JD.com, Inc. (NASDAQ: JD) recently held an IPO for JD Logistics, a subsidiary of the firm, on the Hong Kong exchange. The IPO valued the firm at more than $3 billion, making it one of the biggest market debuts in Hong Kong this year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in the firm with 51.6 million shares worth more than $4.3 billion.
In its Q1 2021 investor letter, Arisaig Partners, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ: JD) was one of them. Here is what the fund said:
“Our largest holding as a firm, JD.com, we expect to grow earnings at an annualised rate of 30% over the next five years, implying it will trade on an EV / EBITDA of 7.5x at the end of this period. Is this a growth stock or a value stock? Does anyone care? Do these labels really matter?
For the Asia Fund, with a higher pre-existing allocation to our core FMCG holdings coming into the year, we took advantage of capital market volatility to further concentrate on our highest conviction names. JD.com has been the main destination for our limited reallocations as evidence continues to emerge supporting our thesis that the company has a strong right-to-win in the large and highly fragmented USD1.8th Chinese grocery market. We have also been encouraged by the fact that after years of persistence, the company is beginning to engage with us on ESG issues (we have specifically discussed data protection, climate change and the circular economy). ESG is now being considered at the board level, and specific sustainability reporting should follow in the coming months. Having long displayed a healthy obsession with customer service, we interpret these latest conversations as a sign that JD is beginning to develop a more sophisticated understanding of its impact on all stakeholders.”
3. NIO Inc. (NYSE: NIO)
Number of Hedge Fund Holders: 28
NIO Inc. (NYSE: NIO) is an electric carmaker. It is ranked third on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have returned 257% to investors in the past year.
On July 1, investment advisory Bank of American maintained a Buy rating on NIO Inc. (NYSE: NIO) stock. The share price of the firm jumped close to 3% after the ratings update and record vehicle delivery numbers posted earlier that week.
At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in NIO Inc. (NYSE: NIO), down from 34 in the preceding quarter worth $2.6 billion.
In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE: NIO) was one of them. Here is what the fund said:
“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”
2. Baidu, Inc. (NASDAQ: BIDU)
Number of Hedge Fund Holders: 89
Baidu, Inc. (NASDAQ: BIDU) is a technology company that owns several internet-related businesses in China. It is placed second on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The stock has offered investors returns exceeding 37% over the course of the past year.
On June 17, Baidu, Inc. (NASDAQ: BIDU) announced that it would be collaborating with an EV firm to develop a fleet of robotaxis named Apollo Moon. The new vehicles would have a manufacturing price of RMB 480,000.
At the end of the first quarter of 2021, 89 hedge funds in the database of Insider Monkey held stakes worth $6.5 billion in Baidu, Inc. (NASDAQ: BIDU), up from 51 in the preceding quarter worth $4.6 billion.
In its Q1 2021 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Baidu, Inc. (NASDAQ: BIDU) was one of them. Here is what the fund said:
“We have also fully exited our stake in Baidu, following their outstanding performance during the period and their lower relative upside potential compared to other investment alternatives, which we will discuss below.
The Chinese technology platform company Baidu has also been held in the portfolios managed by Alejandro, Miguel and myself for several years. During this period, we have seen very high volatility in its share price, which we have taken advantage of to make significant rebalancing moves in our position (in fact, we even sold our entire position once, when we thought the stock’s upside potential was exhausted). After several years of instability, market sentiment turned very positive, putting an end to the historical advertising problems in the healthcare sector, the divestments in O2O (Online-to-Offline) businesses that continued to weigh on the company’s margins, the IPO of part of the iQiyi streaming business (which hid Baidu’s underlying cash generation capacity) and the tough competition from other industry giants such as Tencent and Alibaba, as well as the entry of new players with disruptive business models (ByteDance). At the same time, the company’s recent commitment to electric vehicles contributed even more to this change of narrative. Baidu’s share price rose almost fourfold from the March 2020 lows to all-time highs and reached a valuation where the margin of safety, in our view, was too narrow.”
1. Alibaba Group Holding Limited (NYSE: BABA)
Number of Hedge Fund Holders: 135
Alibaba Group Holding Limited (NYSE: BABA) operates an ecommerce platform that has a global outreach. It is ranked first on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have slumped by 20% over the course of the past twelve months.
Alibaba Group Holding Limited (NYSE: BABA) has soared in recent weeks amid an annual shopping festival that is expected to bring in record revenue for the firm.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE: BABA) with 13.9 million shares worth more than $3.1 billion.
In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE: BABA) was one of them. Here is what the fund said:
“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”
You can also take a peek at 10 Best Chinese Stocks To Buy Now and 10 Best Asian Stocks to Buy Now.
