Goldman Sachs China Stocks: Top 5 Stock Picks

In this article, we will be taking a look at Goldman Sachs’ China stocks: top 5 stock picks. To read our detailed analysis of Chinese market dynamics today, you can go directly to see Goldman Sachs China Stocks: Top 10 Stock Picks.

5. KE Holdings Inc (NYSE:BEKE)

Goldman Sachs’ Q2 Stake Value: $191.8 million

Number of Hedge Fund Holders: 36

KE Holdings Inc (NYSE:BEKE) is a real estate company. It operates an integrated online and offline platform for housing transactions and services.

KE Holdings Inc (NYSE:BEKE) had 36 hedge funds long its stock in the second quarter, with a total stake value of $1.3 billion.

Here’s what Artisan Partners said about KE Holdings Inc (NYSE:BEKE) in its second-quarter 2023 investor letter:

“Bottom contributors to performance for the quarter included real estate platform KE Holdings Inc. (NYSE:BEKE). Beike fell due to weaker industry property sales in China in April following the release of strong pent-up demand in Q1, despite accelerating revenue and very modest cost growth.”

4. Yum China Holdings, Inc. (NYSE:YUMC)

Goldman Sachs’ Q2 Stake Value: $212.6 million

Number of Hedge Fund Holders: 37

In total, 37 hedge funds were long Yum China Holdings, Inc. (NYSE:YUMC) in the second quarter, with a total stake value of $983.9 million.

Yum China Holdings, Inc. (NYSE:YUMC) is a consumer discretionary company based in Shanghai. It owns, operates, and franchises restaurants such as KFC, Pizza Hut, Taco Bell, and Lavazza, among more.

3. Sea Limited (NYSE:SE)

Goldman Sachs’ Q2 Stake Value: $361.2 million

Number of Hedge Fund Holders: 62

Scott Devitt, an analyst at Wedbush, reiterated an Outperform rating on Sea Limited (NYSE:SE) while maintaining a $48 price target on the stock on September 6.

Sea Limited (NYSE:SE) is a communication services company. It engages in the digital entertainment, e-commerce, and digital financial service businesses.

There were 62 hedge funds long Sea Limited (NYSE:SE) in the second quarter. Their total stake value was $1.9 billion.

Artisan Partners mentioned Sea Limited (NYSE:SE) in its second-quarter 2023 investor letter:

“Bottom contributors to performance for the quarter included Southeast Asian Internet leader Sea Limited (NYSE:SE). Sea declined due to rising investor concerns around e-commerce competition from TikTok in Southeast Asia during a period of subdued gross merchandise value growth, while the gaming business continues to struggle.”

2. Pinduoduo Inc. (NASDAQ:PDD)

Goldman Sachs’ Q2 Stake Value: $522.4 million

Number of Hedge Fund Holders: 67

Pinduoduo Inc. (NASDAQ:PDD) is a broad-line retail company. It owns and operates an e-commerce platform offering products such as agricultural produce, apparel, shoes, bags, and more.

In the second quarter, 67 hedge funds were long Pinduoduo Inc. (NASDAQ:PDD), with a total stake value of $2.6 billion.

On August 30, Fawne Jiang at Benchmark maintained a Buy rating on Pinduoduo Inc. (NASDAQ:PDD) shares alongside placing a $140 price target on the stock.

1. Alibaba Group Holding Limited (NYSE:BABA)

Goldman Sachs’ Q2 Stake Value: $719.5 million

Number of Hedge Fund Holders: 112

A Positive rating and a $160 price target were reiterated on Alibaba Group Holding Limited (NYSE:BABA) shares on August 31 by Shyam Patil at Susquehanna.

A total of 112 hedge funds were long Alibaba Group Holding Limited (NYSE:BABA) in the second quarter. Their total stake value was $4.1 billion.

Alibaba Group Holding Limited (NYSE:BABA) is another broad-line retail company on our list. It provides tech infrastructure and marketing reach to merchants, brands, retailers, and other businesses.

See also 11 Cheap Chinese Stocks to Buy According to Analysts and 10 Chinese Stocks Billionaires Are Loading Up On.