5 China Stocks in Ray Dalio’s Portfolio

In this article, we discuss 5 China stocks in Ray Dalio’s portfolio. If you want to read our analysis of Dalio’s stance on China and more of his stock picks, go directly to 10 China Stocks in Ray Dalio’s Portfolio. 

5. Yum China Holdings, Inc. (NYSE:YUMC)

Number of Hedge Fund Holders: 25

Yum China Holdings, Inc. (NYSE:YUMC) is a Shanghai-based company that operates and franchises restaurants in China under the KFC, Pizza Hut, Little Sheep, Huang Ji Huang, Lavazza, COFFii & JOY, Taco Bell, and East Dawning brands. Bridgewater Associates owns more than 1.5 million shares of Yum China Holdings, Inc. (NYSE:YUMC) worth $75 million as of Q2 2022, representing 0.31% of the total 13F holdings. Despite missing market estimates for EPS and revenue during Q2 2022, the company reaffirmed its FY 2022 outlook of opening approximately 1,000 to 1,200 new stores.

On July 26, CMB International analyst Walter Woo upgraded Yum China Holdings, Inc. (NYSE:YUMC) to Buy from Hold with a HK$426.17 price target, up from HK$287.57. While the analyst expects future earnings cuts to occur, easing pandemic restrictions and efficient cost management make him optimistic on Yum China Holdings, Inc. (NYSE:YUMC)’s outlook for the second half of 2022.

Among the hedge funds tracked by Insider Monkey, Yum China Holdings, Inc. (NYSE:YUMC) was part of 25 hedge fund portfolios at the end of Q2 2022, compared to 27 funds in the earlier quarter. GuardCap Asset Management is the largest shareholder of the company, with more than 9 million shares worth $438 million.