5 Chinese Stocks to Buy According to Jonathan Guo’s Yiheng Capital

1. Bilibili Inc. (NASDAQ:BILI)

Guo’s Stake Value: $591.7 million
Percentage of Jonathan Guo’s 13F Portfolio: 23.81%
Number of Hedge Fund Holders: 47

Bilibili Inc. (NASDAQ:BILI) is an online entertainment platform featuring videos, live broadcasting, and mobile games. The company has a market capitalization of $28.36 billion, and is ranked first on the list of the 10 Chinese stocks to buy according to Jonathan Guo’s Yiheng Capital.

On August 19, Bilibili Inc. (NASDAQ:BILI) released its earnings report for the second quarter of 2021. The company reported earnings per share at -$0.45, beating the expectations by $0.11. In addition, the revenue reported was $692.14 million, an increase of 82.22% on a year-over-year basis, surpassing the forecast estimates by $28.86 million.

Out of the hedge funds being tracked by Insider Monkey’s database, UK-based investment firm, Aubrey Capital Management is a leading shareholder in Bilibili (NASDAQ:BILI) with 219,670 shares worth more than $26.76 billion.

In the Q2 2021 investor letter of Baillie Gifford, the fund mentioned Bilibili Inc. (NASDAQ: BILI). Here is what the fund said:

“One of the most important cognitive elements, is our recognition that consumer patterns and attitudes are evolving increasingly rapidly and with ever greater amplitude. While the human needs for self-actualisation, esteem and belonging are innate and immutable, they are being expressed in new ways. Tastes are being shaped by social groups who are culturally similar but geographically distant. The lines between the physical and digital-self continue to blur.

To those in the throes of middle age, this can be discombobulating. I profess to unease when my daughter recently earned five pounds stacking logs – only to ‘blow’ this pocket money on a pair of virtual Gucci sneakers for her online Roblox character. But we need to be imaginative about the possible size of the market for virtual luxury in the long term and it’s encouraging to observe that Kering is already on the front foot. It is also amply clear that the experienced Long Term Global Growth investors who predate Generations Y & Z, need the help of colleagues in understanding the mood and aspirations of a new cohort of conscious consumers. In this sense, the multigenerational and multicultural dynamic within the LTGG team (and indeed across the broader Baillie Gifford investment floor), has never seemed more important…” (Click here to see the full text)

You can also take a look at 20 Best Places to Invest in Rental Property in 2021 and  10 Best Robinhood Stocks Under $20. 

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