5 Chinese Stocks Billionaires Are Loading Up On

In this article, we discuss 5 Chinese stocks that billionaires are buying. If you want to see more stocks in this selection, check out 10 Chinese Stocks Billionaires Are Loading Up On. 

5. Vipshop Holdings Limited (NYSE:VIPS)

Number of Hedge Fund Holders: 29

No. of Billionaire Investors: 11

Vipshop Holdings Limited (NYSE:VIPS) runs digital platforms in China. The company provides a wide range of products such as clothing, shoes, bags, accessories, baby and children’s items, skincare and cosmetics, home goods, lifestyle products, and even supermarket items. It is one of the top Chinese names found in billionaire stock portfolios. 

On May 24, Fawne Jiang, an analyst at Benchmark, increased the price target for Vipshop Holdings Limited (NYSE:VIPS) from $15 to $19 and maintained a Buy rating on the shares. According to the analyst, Vipshop Holdings Limited (NYSE:VIPS)’s strong performance in the first quarter, coupled with optimistic guidance for the second quarter, indicates a renewed growth in apparel categories. The analyst’s improved confidence level has prompted the firm to raise its growth projections for FY23 and FY24.

According to Insider Monkey’s first quarter database, 29 hedge funds were bullish on Vipshop Holdings Limited (NYSE:VIPS), compared to 24 funds in the earlier quarter. Harris Associates is the largest stakeholder of the company, with 13.6 million shares worth $207 million. 

Here is what Oakmark Fund has to say about Vipshop Holdings Limited (NYSE:VIPS) in its Q3 2021 investor letter:

“Vipshop Holdings ADR (China) offers a differentiated value proposition to its customers via its online product sales and distributions services. We like that the business model is asset-light due to inventory being predominantly on consignment and logistics outsourced to a third party. We believe the company should generate meaningful free cash flow moving forward.”

4. H World Group Limited (NASDAQ:HTHT)

Number of Hedge Fund Holders: 33

No. of Billionaire Investors: 13

H World Group Limited (NASDAQ:HTHT) focuses on the development of hotels in China. The company operates a variety of hotel properties through leasing, ownership, management, and franchise arrangements. On May 29, H World Group Limited (NASDAQ:HTHT) reported a Q1 non-GAAP EPADS of $0.45 and a revenue of $652 million, up 67.1% year-over-year. H World Group Limited (NASDAQ:HTHT) anticipates a significant increase in revenue growth of between 51% and 55% for the second quarter of 2023, as compared to the same period in 2022. The company is among the preferred choices of Chinese stocks for billionaires.

On March 28, Fawne Jiang, an analyst at Benchmark, increased the price target for H World Group Limited (NASDAQ:HTHT) from $45 to $64 and maintained a Buy rating on the company’s shares. The analyst mentioned that the company’s fourth-quarter results were in line with expectations, and the first-quarter guidance is optimistic. The firm attributed the company’s improved performance to effective cost control measures, resulting in a leaner and more efficient operation, which is expected to contribute to higher earnings growth. The firm remains confident in H World Group Limited (NASDAQ:HTHT)’s position as a market leader and consolidator in China’s hotel industry.

According to Insider Monkey’s first quarter database, 33 hedge funds were long H World Group Limited (NASDAQ:HTHT), compared to 35 funds in the prior quarter. 

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.”

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.”

1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 128

No. of Billionaire Investors: 25

Alibaba Group Holding Limited (NYSE:BABA) stands out as the most preferred Chinese stock among billionaires. As of the first quarter of 2023, Alibaba Group Holding Limited (NYSE:BABA) stock was held in the portfolios of 25 billionaires.

On May 19, Colin Sebastian, an analyst at Baird, maintained an Outperform rating on Alibaba Group Holding Limited (NYSE:BABA) but reduced the price target on the shares to $115 from $120. The analyst noted that despite a generally strong performance in the fourth quarter, persistent competitive pressures in China Commerce and a decrease in Cloud revenues overshadowed the positive earnings results and the accelerated growth observed in International and Local Consumer Services.

According to Insider Monkey’s first quarter database, 128 hedge funds held stakes worth $5.8 billion in Alibaba Group Holding Limited (NYSE:BABA), compared to 113 funds in the prior quarter worth $5.6 billion. 

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”

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