5 Stocks to Buy As Virus Restrictions Are Lifted in China

4. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 100 

Increase in Share Price Over Past Month: 24.83%

Alibaba Group Holding Limited (NYSE:BABA) is a diversified technology company. On June 8, the stock climbed more than 10% in a single trading day after more approvals for video games licenses in China. The approvals, of which Alibaba is also a beneficiary, are the latest sign that the Chinese authorities are easing a regulatory crackdown that has haunted dual-listed tech firms in the country. The approvals also mean that the government in Beijing is now actively working to support the growth in the tech industry. 

On May 31, Truist analyst Youssef Squali maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and raised the price target to $145 from $132, noting that there were positive early signs for Chinese audit concessions amid US pressure. 

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 14.4 million shares worth more than $1.5 billion. 

In its Q1 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:

“We have eliminated 6 holdings during the first quarter (including) Alibaba Group Holding Limited (NYSE:BABA). We have sold our Alibaba Group Holding Limited (NYSE:BABA) position as the company continues to face competitive challenges and regulatory pressures remain, making it difficult (if not impossible) to appropriately assess the range of outcomes and associated probabilities for the future profitability of the business.”