5 Best Chinese Stocks To Buy Now

4. Pinduoduo Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 41 

Pinduoduo Inc. (NASDAQ:PDD) operates an e-commerce platform in the People’s Republic of China. The firm is among the best Chinese stocks to invest in. On August 29, Pinduoduo Inc. (NASDAQ:PDD) posted earnings for the second quarter of 2022, reporting a revenue of $4.6 billion, up over 36% compared to the revenue in the same period last year and beating market estimates by around $1.2 billion. The firm reported that earnings per share in the second quarter were $1.13, beating estimates by $0.72.

On September 9, Barclays analyst Jiong Shao maintained an Equal Weight rating on Pinduoduo Inc. (NASDAQ:PDD) stock and raised the price target to $66 from $45, noting the firm posted surprisingly stronger than expected top-line and gross margins in Q2. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Pinduoduo Inc. (NASDAQ:PDD), with 6.1 million shares worth more than $380.8 million. 

In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Pinduoduo Inc. (NASDAQ:PDD) was one of them. Here is what the fund said:

“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue grow with such a team with strong culture.”