In this article, we will take a look at the top 15 Chinese companies on US exchanges. To see more such companies, go directly to Top 5 Chinese Companies on US Exchanges.
Major crackdowns, slowing growth, real estate debacles and overall uncertainty took a toll on Chinese stocks and the country’s economy throughout the year 2023. However, latest data points to some hope that economic activity might be rekindling in China. Chinese factories saw a jump in activity in September for the first time since the spring, according to a report from the Wall Street Journal.
Talking to Bloomberg in September, James Wang, head of China strategy at UBS Investment Bank Research, said that he “feels” that Chinese stocks are bottoming. The analyst said he based his thesis on five signals, including outflows, yield, turnover, PMI and multiples. The analyst said that individually, these signals are not strong indicators but when read together they can provide a solid picture.
Chinese government is also coming to terms with the reality that it’d have to inject money into the system and provide stimuli to gain back investors’ trust. Bloomberg recently reported that the country is mulling to form a state-backed stabilization fund to shore up confidence in the stock market.
“After at least two rounds of consultation with industry participants over a period of months, financial regulators including the China Securities Regulatory Commission recently submitted a preliminary plan to the nation’s top leadership,” Bloomberg said, citing people familiar with the matter.
But despite government-backed stimulus programs, the economy would take a long time to come back to normal, according to analysts. The Wall Street Journal report quoted Louise Loo, lead economist for China at Oxford Economics in Singapore, who said:
“I think we’re bottoming out, but the bottom looks pretty long, for now. We need more stimulus.”
Photo by David Veksler on Unsplash
Our Methodology
For this article, we first used a stock screener to identify all Chinese stocks trading on US stock exchanges. We then sorted these companies based on market cap and picked the top 15 companies. These companies are also popular among the 910 elite hedge funds (mostly American) tracked by Insider Monkey. Some top names in the list include Alibaba Group Holding Limited (NYSE:BABA), NetEase, Inc. (NASDAQ:NTES) and JD.Com Inc. (NASDAQ:JD).
Top 15 Chinese Companies on US Exchanges
15. MINISO Group Holding Limited (NYSE:MNSO)
Market Capitalization: $8.047B
Lifestyle products MINISO Group Holding Limited (NYSE:MNSO) has seen its stock price jump by 135% year to date. Out of the 910 hedge funds tracked by Insider Monkey, 16 hedge funds had stakes in MINISO Group Holding Limited (NYSE:MNSO) as of the end of the second quarter, up from 12 funds in the previous quarter.
14. Vipshop Holdings Limited (NYSE:VIPS)
Market Capitalization: $8.17B
Chinese ecommerce Vipshop Holdings Limited (NYSE:VIPS) shares have gained about 6% year to date through October 17. Out of the 910 hedge funds tracked by Insider Monkey, 28 hedge funds reported owning stakes in Vipshop Holdings Limited (NYSE:VIPS).
Like VIPS, Alibaba Group Holding Limited (NYSE:BABA), NetEase, Inc. (NASDAQ:NTES) and JD.Com Inc. (NASDAQ:JD) are also gaining traction among hedge funds.
13. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Market Capitalization: $10.443B
New Oriental Education & Technology Group Inc. (NYSE:EDU) is an educational services company. New Oriental Education & Technology Group Inc. (NYSE:EDU) has jumped about 170% over the past one year. New Oriental Education & Technology Group Inc. management talked in detail about its guidance and future business plans in an earnings call in July. New Oriental Education & Technology Group Inc. said:
“To conclude, the financial results we recorded in fiscal year ‘23 and performance of our new business have reaffirmed our confidence in achieving the satisfactory level of the operating profit and the improvement of the profitability in the first quarter and the whole year of fiscal year ‘24. New Oriental Education & Technology Group Inc. placed great determination to invigorate new endeavors with our existing capabilities. Simultaneously, we will also devote reasonable resources on research and application of new technologies such as AI and ChatGPT into our educational and product offerings with the vision to uplift our strength and pursue growth in opening and operating efficiency. At the same time, we will continue to stay committed to seek guidance from and corporate with government authorities in various provinces.”
Read the full earnings call transcript here.
Ariel Global Fund made the following comment about New Oriental Education & Technology Group Inc. (NYSE:EDU) in its Q2 2023 investor letter:
“We added a new investment position inNew Oriental Education & Technology Group Inc. (NYSE:EDU), a leading after school tutoring program in China. Although the Chinese government banned K-12 academic after school tutoring, the company was able to leverage its expertise in course content quality control and standardized tutoring processes to quickly reposition itself as a leader of non-academic after school tutoring. Furthermore, we anticipate the company’s strong brand and the entrepreneurial acumen of its founder, Michael Yu, will create additional opportunities for expansion as a comprehensive educational service provider.”
12. Huazhu Group Limited (NASDAQ:HTHT)
Market Capitalization: $10.982B
Hotel management Huazhu Group Limited (NASDAQ:HTHT) ranks 12th in our list of the top Chinese companies trading on US exchanges. Out of the 910 hedge funds tracked by Insider Monkey, 31 hedge funds had stakes in Huazhu Group Limited (NASDAQ:HTHT).
11. XPeng Inc. (NYSE:XPEV)
Market Capitalization: $12.427B
Chinese EV XPeng Inc. (NYSE:XPEV) is one of the top Chinese companies trading on American stock exchanges. XPeng Inc.(NYSE:XPEV) has gained about 50% year to date through October 17.
10. NIO Inc. (NYSE:NIO)
Market Capitalization: $14.371B
Chinese NIO Inc. (NYSE:NIO) is perhaps one of the most popular Chinese stocks trading on US stock exchanges. In September NIO Inc. (NYSE:NIO) delivered 15,641 vehicles, a 43.8% Y/Y increase but a decline of 19% M/M. In the third quarter NIO Inc. (NYSE:NIO) delivered 55,432 vehicles, a 75.4% Y/Y increase.
Out of the 910 hedge funds tracked by Insider Monkey, 19 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in NIO Inc. (NYSE:NIO). The most significant stakeholder of NIO Inc.(NYSE:NIO) was Ray Dalio’s Bridgewater Associates which had a stake worth about $32 million in the company.
NIO Inc. (NYSE:NIO) management talked about its future plans and expectations in Q2 earnings call and said:
“For NIO brand, actually, we don’t plan to launch any new products in the year of 2024. Of course, we will still roll out some routine facelifts or product upgrades, but we haven’t planned any new products for next year, because we think that it’s more important for us to stay focused on our existing eight products on the NT2 platform to continuously improve its qualities and also market performance. Just like in 2021, we didn’t launch any new models, but still we have realized a very good gross margin, sales volume as well as quality performance. So that’s the plan for the brand of NIO. In terms of our mass market brand, ALPS, we plan to launch the very first model from ALPS in the second half of next year.
Right now, the R&D activities are proceeding according to the plan. Actually, we have just rolled out the verification build of the first model from ALPS and this model will be highly competitive in its product segment. And also for the brands of ALPS, its R&D philosophy is different from that of NIO. ALPS is targeting at the mass market, and we will not have many products in the lineup for ALPS. But for NIO, it’s different. It is targeting at the premium segment where we care more about the personalization and also the differentiation of the products. Just like Mercedes …” [read the full earnings call transcript here]
9. ZTO Express (Cayman) Inc. (NYSE:ZTO)
Market Capitalization: $19.294B
Shanghai, China-based logistics ZTO Express (Cayman) Inc. (NYSE:ZTO) is one of the top Chinese companies trading on US exchanges. In August ZTO Express (Cayman) Inc. (NYSE:ZTO) posted second quarter results and reiterated its full-year 2023 outlook. Adjusted EPADS in the quarter came in at $0.42, beating estimates by $0.04. Revenue in the quarter jumped about 3.9% year over year to $1.34 billion, missing estimates by $70 million.
Insider Monkey’s database of 910 hedge funds shows that 25 hedge funds had stakes in ZTO Express (Cayman) Inc. (NYSE:ZTO). The biggest stakeholder of ZTO Express (Cayman) Inc. (NYSE:ZTO) was Kerr Neilson’s Platinum Asset Management which had a $393 million stake in the firm.
8. KE Holdings Inc. (NYSE:BEKE)
Market Capitalization: $19.485B
Online real estate platform KE Holdings Inc. (NYSE:BEKE) ranks 8th in our list of the top Chinese companies trading on US exchanges. KE Holdings Inc. (NYSE:BEKE) has gained about 25% over the past one year. In August the stock jumped after KE Holdings Inc. (NYSE:BEKE) declared a special dividend and increased its stock buyback program.
A total of 65 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in KE Holdings Inc. (NYSE:BEKE). The most significant stakeholder of KE Holdings Inc. (NYSE:BEKE) during this period was Lei Zhang’s Hillhouse Capital Management which owns a $532 million stake in the company. Artisan Developing World Fund made the following comment 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.”
7. Yum China Holdings, Inc. (NYSE:YUMC)
Market Capitalization: $21.73B
Fast food restaurant Yum China Holdings, Inc. (NYSE:YUMC) ranks 7th in our list of the top Chinese companies on US exchanges. Yum China Holdings, Inc. (NYSE:YUMC) has gained about 13% over the past one year.
Out of the 910 hedge funds tracked by Insider Monkey, 37 hedge funds reported owning stakes in Yum China Holdings, Inc. (NYSE:YUMC). The biggest stakeholder of Yum China Holdings, Inc. (NYSE:YUMC) was Guardian Capital’s GuardCap Asset Management which owns a $515 million stake in the company.
6. Trip.com Group Limited( NASDAQ:TCOM)
Market Capitalization: $21.329B
China-based travel services Trip.com Group Limited ( NASDAQ:TCOM) ranks 6th in our list of the best Chinese stocks to buy according to hedge funds. Out of the 910 hedge funds tracked by Insider Monkey, Richard S. Pzena’s Pzena Investment Management had a $230 million stake in Trip.com Group Limited ( NASDAQ:TCOM).
Trip.com Group Limited ( NASDAQ:TCOM) has gained about 39% over the past one year. Trip.com Group Limited ( NASDAQ:TCOM) second quarter results were strong amid increasing travel demand. EPS in the quarter came in at RMB 0.94 per ADS, compared to RMB 0.10 posted in the same quarter last year. Net revenue in the period jumped 180% on a YoY basis.
Trip.com Group Limited ( NASDAQ:TCOM) is also optimistic about its future. Trip.com Group Limited ( NASDAQ:TCOM)’s management said the following during its Q2 earnings call:
“Turning to the third quarter of 2023. We would like to share some colors of our business. The travel market continued to show very strong momentum in the third quarter, primarily driven by leisure travel demand. In July, the industry level air passenger volume in the domestic market was 10% to 15% higher than the 2019 level, and industry level hotel RevPAR was above 10% higher. International air passenger volume has also recovered to over 50% quarter-to-date. Our domestic hotel bookings has increased by over 70% when compared to the same period in 2019 and has increased by more than 100% during peak weeks. In the outbound segment, our hotel and air bookings have recovered to 80% of the 2019 level and has even surpassed the prepayment levels during peak weeks.
In addition, our global OTA platform has also continued to maintain a triple digit growth when compared to the same period before pandemic. To conclude, the strong level of bookings in the second quarter of 2023 across market segments is encouraging. We are confident in travelers unwavering travel demand and the long-term market outlook and remain keen on capitalizing on the opportunities that lie ahead with us.”
Read the full earnings call transcript here.
Like Alibaba Group Holding Limited (NYSE:BABA), NetEase, Inc. (NASDAQ:NTES) and JD.Com Inc. (NASDAQ:JD), Trip.com is also among the top Chinese stocks loved by hedge funds.
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Disclosure: None. Top 15 Chinese Companies on US Exchanges is originally published on Insider Monkey.
