After Slump In Chinese Equities, These Are Five Stocks You Should Consider For Your Portfolio

#4 Baidu Inc (ADR)(NASDAQ:BIDU)

– Investors with Long Positions (as of December 31): 55

– Aggregate Value of Investors’ Holdings (as of December 31): $4.19 billion

The unprecedented 58.4% rise that Baidu Inc (ADR)(NASDAQ:BIDU)’s stock saw during October and November, helped boost the company’s popularity among hedge funds during the fourth quarter. During the quarter, the number investors covered by us with long positions in Baidu Inc increased by three and the aggregate value of their holdings in the company rose by $787 million. Billionaire Ken Fisher‘s Fisher Asset Management was among the hedge funds which upped their stakes in the company during the fourth quarter; it increased its holding by 5% to slightly above 1 million shares. Shares of the Chinese search giant have recouped a large amount of the loss they suffered earlier this year and currently trade down only 3.6% year-to-date. According to recent reports, the company is currently in talks with US government to test its driverless cars in the country and plans to launch its first driverless cars in the Chinese market by 2018. On March 1, analysts at Oppenheimer reiterated their ‘Outperform’ rating on the stock, while upping their price target to $240 from $220, which represents a potential upside of nearly 30% from the stock’s current trading price.

#3 Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP)

– Investors with Long Positions (as of December 31): 61

– Aggregate Value of Investors’ Holdings (as of December 31): $3 billion

The market leader in online travel services in China, Ctrip.com International, saw a notable  increase in its popularity among hedge fund during the fourth quarter with its ownership among investors covered by us increasing by 18 and the aggregate value of their holdings in it growing by $914 million. Lei Zhang‘s Hillhouse Capital Management doubled its stake in the company to nearly 7.5 million shares during that period. Taking into account the one-for-two reverse stock split in December, the stock is currently trading up by 37.8% from the start of the fourth quarter. On March 16, the company reported its fiscal 2015 fourth quarter results, declaring EPS of $0.11 on revenue of $440 million versus a per share loss of $0.11 on revenue of $308.37 million it had reported for the same quarter of the previous year. According to most analysts, despite a slowdown in the Chinese economy, China’s travel market is expected to grow at a phenomenal pace over the next few years and Ctrip.com International is better positioned than most of its peers to benefit from that growth.