In this article, we discuss the 5 best Chinese stocks to buy now. If you want to read about some more Chinese stocks to buy now, go directly to 11 Best Chinese Stocks To Buy Now.
5. NetEase, Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 26
NetEase, Inc. (NASDAQ:NTES) provides online services focusing on diverse content, community, communication, and commerce in China. It is one of the top Chinese stocks to invest in. On August 18, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $1.22, beating estimates by $0.17. The revenue over the period was $3.5 billion, up over 12% year-on-year.
On August 19, Citi analyst Alicia Yap maintained a Buy rating on NetEase, Inc. (NASDAQ:NTES) stock and raised the price target to $140 from $132, appreciating the second quarter earnings report of the firm.
Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in NetEase, Inc. (NASDAQ:NTES), with 3.67 million shares worth more than $342 million.
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.”
3. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 45
Baidu, Inc. (NASDAQ:BIDU) offers internet search services in China. The company is one of the most prominent Chinese stocks to invest in. On August 30, the firm posted earnings for the second quarter of 2022, reporting a revenue of $4.43 billion, down over 5% compared to the revenue in the same period last year but beating market estimates by around $230 million. The firm said that the earnings per share in the second quarter were $2.36, beating estimates by $0.79.
On September 16, UBS analyst Wei Xiong initiated coverage of Baidu, Inc. (NASDAQ:BIDU) stock with a Buy rating and a price target of HK$191.30, noting that the risk/reward profile of the shares appeared attractive for investors.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investment is a leading shareholder in Baidu, Inc. (NASDAQ:BIDU), with 2.6 million shares worth more than $393 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Baidu, Inc. (NASDAQ:BIDU) was one of them. Here is what the fund said:
“Baidu, Inc. (NASDAQ:BIDU), a leading Chinese artificial intelligence company, contributed to performance in the second quarter due to an improving outlook for its mobile ecosystem, continued market share gains in cloud computing, solid progress in autonomous vehicle development, and improving operational efficiency. We see significant upside for Baidu, given its strong competitive position across several of China’s key growth industries.”
2. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 62
JD.com, Inc. (NASDAQ:JD) provides supply chain-based technologies and services in China. The firm features on the list of best Chinese stocks to invest in. On August 23, the firm posted earnings for the second quarter of 2022, reporting a revenue of $40 billion, up over 5% compared to the revenue in the same period last year and beating market estimates by around $1.4 billion. The firm said that the earnings per share in the second quarter were $0.61, beating estimates by $0.20.
On September 12, Susquehanna analyst Shyam Patil maintained a Neutral rating on JD.com, Inc. (NASDAQ:JD) stock and increased the price target to $62 from $55, noting that the second quarter earnings of the firm were solid despite macro headwinds.
At the end of the second quarter of 2022, 62 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in JD.com, Inc. (NASDAQ:JD), compared to 59 in the previous quarter worth $5.4 billion.
In its Q3 2021 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ:JD) was one of them. Here is what the fund said:
“We sold JD.com, Inc. (NASDAQ: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.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Alibaba Group Holding Limited (NYSE:BABA), through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses. The firm features on the list of best Chinese stocks to invest in. On September 23, the company announced that it would be investing up to $1 billion over the next three years as part of an effort to support the cloud computing customers of the firm and also boost growth. The firm said the investment would comprise both financial and non-financial incentives.
On August 8, Deutsche Bank analyst Leo Chiang maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and raised the price target to $160 from $155, appreciating the second quarter earnings beat of the firm.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA), with 14 million shares worth more than $1.6 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:
“Alibaba Group Holding Limited(NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third party online payment provider. Shares of Alibaba rose during the quarter, driven by an increasing focus on improving capital allocation, an improving regulatory environment, and government stimulus targeting Chinese consumers. We retain conviction that Alibaba will benefit from rapid growth in cloud services, logistics, and retail.”
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