5 Chinese Stocks Billionaires Are Loading Up On

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

Number of Hedge Fund Holders: 59

No. of Billionaire Investors: 17

JD.com, Inc. (NASDAQ:JD) operates in China and provides supply chain technologies and services. The company’s offerings include a wide range of products such as computers, communication devices, consumer electronics, home appliances, and general merchandise. During the first quarter of 2023, JD.com, Inc. (NASDAQ:JD) was included in the investment portfolios of 17 billionaires, making it one of the top Chinese stocks billionaires are loading up on. 

On May 18, Shyam Patil, an analyst at Susquehanna, decreased the price target for JD.com, Inc. (NASDAQ:JD) from $45 to $40 while maintaining a Neutral rating on the shares. According to the analyst, the company’s top-line growth was modest but satisfactory, and the management has shown a commitment to cost control measures.

According to Insider Monkey’s first quarter database, JD.com, Inc. (NASDAQ:JD) was part of 59 hedge fund portfolios, compared to 64 in the earlier quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company. 

Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”