10 Best Non-US Stocks to Buy According to Hedge Funds

​6. PDD Holdings Inc. (NASDAQ:PDD)

Market Capitalization: $155.86 billion

Number of Hedge Fund Holders: 73

​PDD Holdings Inc. (NASDAQ:PDD) is one of the Best Non-US Stocks to Buy According to Hedge Funds. PDD Holdings Inc. (NASDAQ:PDD) has fallen more than 15.5% over the past month. Recently, on December 9, Shawn Yang from Arete Research downgraded the stock from Buy to Hold, while keeping the price target the same at $130.

​The company’s e-commerce platform, Temu, continues to be under the radar of regulatory authorities. On December 10, Reuters reported that Temu’s European headquarters was raided by the European Union’s regulators on potential Chinese state subsidies to the online retailer.

​The regulators have increased their attention towards Chinese e-commerce platforms, including Temu and Shein, over concerns that they have flooded the European market with free deliveries on parcels worth less than 150 euros. The regulators believe that this gives these platforms an unfair advantage. Moreover, the EU is also planning to scrap the duty exemption that allows Chinese e-commerce platforms to offer free deliveries by the end of next year, thereby further exacerbating the issue for PDD Holdings Inc. (NASDAQ:PDD).

​This is not the first time that Temu has come under the radar of regulators. Last year, the EU opened an investigation into the platform under the Digital Services Act and found that the company had not done enough to prevent the sale of illegal products on its platform.

​That said, the European Commission’s Foreign Subsidies Regulation has the authority to impose a 10% fine on the total turnover of Temu’s annual aggregated turnover for breaches of disrupting the competition in the European market.

​PDD Holdings Inc. (NASDAQ:PDD) is a leading e-commerce group with a range of businesses. Pinduoduo and Temu are two of the main platforms of the company, among others. It has built a network of logistics, sourcing, and fulfillment capabilities to connect businesses with people.