5 Chinese Stocks Billionaires Are Loading Up On

3. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 62

No. of Billionaire Investors: 16

PDD Holdings Inc. (NASDAQ:PDD), a Chinese multinational commerce conglomerate, possesses and manages a collection of businesses. One of its main operations is Pinduoduo, an e-commerce platform that provides a wide range of products across categories such as apparel, footwear, bags, baby products, food and beverages, electronic appliances, furniture, household goods, cosmetics, sports and fitness equipment, and automotive accessories. PDD Holdings Inc. (NASDAQ:PDD) is regarded as one of the most prominent Chinese stocks among billionaires. In the first quarter of 2023, a total of 16 billionaires included PDD Holdings Inc. (NASDAQ:PDD) stock in their investment portfolios.

On May 29, JPMorgan maintained an optimistic outlook on PDD Holdings Inc. (NASDAQ:PDD), reaffirming an Overweight rating on the shares, with an unchanged price target of $110. The firm highlighted the company’s robust performance in the first quarter, which has restored confidence in its ability to gain market share. According to JPMorgan, this trend is expected to support PDD Holdings Inc. (NASDAQ:PDD)’s revenue growth, with projections of over 20% year-over-year in the upcoming quarters. 

According to Insider Monkey’s first quarter database, 62 hedge funds were long PDD Holdings Inc. (NASDAQ:PDD), compared to 57 funds in the prior quarter. Lei Zhang’s Hillhouse Capital Management is the largest stakeholder of the company, with 10.6 million shares worth $807.8 million. 

Here is what Tao Value has to say about Pinduoduo Inc. (NASDAQ:PDD) in its Q4 2021 investor letter:

“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue to grow with such a team with a strong culture.”