5 Rebounding Chinese Stocks to Buy Now

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In this article, we discuss 5 rebounding Chinese stocks to buy now. If you want to see more stocks in this selection, check out 10 Rebounding Chinese Stocks to Buy Now

5. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)

Number of Hedge Fund Holders: 24

Share Price Gain in the Last Month as of August 30: 9.61%

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) was incorporated in 2004 and is headquartered in Central, Hong Kong. The company owns and operates casino gaming and resort facilities in Asia and Europe. The company bought back approximately 1.7 million American depositary shares worth about $8 million in Q2 2022. However, the Q2 results failed to meet Wall Street consensus due to COVID-19 lockdowns impacting demand. Regardless of slow demand, Melco Resorts & Entertainment Limited (NASDAQ:MLCO) stock has gained close to 10% in the last month as of August 30. 

On July 5, Citi analyst George Choi reiterated a Buy recommendation on Melco Resorts & Entertainment Limited (NASDAQ:MLCO) but lowered the price target on the shares to $11 from $12.50. Most investors can look past the latest COVID outbreak in Macau and have confidence in the eventual EBITDA recovery in Macau, as per the analyst. The analyst said that the positive investor sentiment is supported by the “much-lower-than-anticipated regulatory risks” after the Legislative Assembly’s passing of the Gaming Law amendments in June. In the short-term, the analyst believes the license re-tender potentially scheduled for August could be the next positive catalyst to re-rate Macau stocks “to the next level”.

Among the hedge funds tracked by Insider Monkey, Ricky Sandler’s Eminence Capital is the leading stakeholder of Melco Resorts & Entertainment Limited (NASDAQ:MLCO) as of Q2 2022, with 11.5 million shares worth about $66.5 million. Overall, 24 hedge funds were long Melco Resorts & Entertainment Limited (NASDAQ:MLCO) at the end of June, compared to 26 funds in the prior quarter. 

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