Top 5 Chinese Companies on NASDAQ

2. JD.com, Inc. (NYSE:JD)

Number of Hedge Fund Holders: 59

Headquartered in Beijing, JD.com, Inc. (NYSE:JD) is one of China’s leading e-commerce retailers. In terms of revenue, it is the third-largest internet company in the world.

To serve over 300 million customers, JD.com, Inc. (NYSE:JD) operates its national logistics network, which allows the company to deliver up to 90% of orders within a day. JD.com, Inc. (NYSE:JD) claims to have the most dependable delivery service amongst the major e-commerce companies in the world.

On May 19, Shyam Patil at Susquehanna gave a Neutral rating on JD.com, Inc. (NYSE:JD) stock. Even though the analyst lowered the price target from $66 to $55, he presented a positive opinion on JD.com, Inc.’s (NYSE:JD) positioning in the expanding Chinese e-commerce segment. Patil appreciated the company’s efficiency in incubating new businesses and believes that the company’s “hybrid 1P/3P model is attractive.”

In Q1 2022, JD.com, Inc. (NYSE:JD) posted an EPS Normalized Actual of $0.38, beating the analysts’ estimates by $0.13. Moreover, the company surpassed the revenue estimates by $850.7 million.

Here’s what Argosy Investors said about JD.com, Inc. (NYSE:JD) in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”

As of Q1 2022, JD.com, Inc. (NYSE:JD) was held by 59 hedge funds.