5 Stocks At Risk From Slowing Chinese Economy

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 106 

Alibaba Group Holding Limited (NYSE:BABA) is a diversified technology company. As a slowing Chinese economy weighs on the shares of the firm, regulatory pressures from both the Chinese and the US governments, the former with regards to algorithm transparency and the latter on audits, have added to the pressures on the share price. These pressures are expected to continue to impact the firm despite the Chinese government injecting $146 billion into the economy and reaching an audit agreement with the US. 

On August 8, Deutsche Bank analyst Leo Chiang maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and raised the price target to $160 from $155, appreciating the second quarter earnings beat of the firm. 

Among 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 14.4 million shares worth more than $1.6 billion. 

In its Q1 2022 investor letter, Baron Funds, 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:

“We have eliminated 6 holdings during the first quarter (including) Alibaba Group Holding Limited (NYSE:BABA). We have sold our Alibaba Group Holding Limited (NYSE:BABA) position as the company continues to face competitive challenges and regulatory pressures remain, making it difficult (if not impossible) to appropriately assess the range of outcomes and associated probabilities for the future profitability of the business.”