5 Top Chinese Companies on NASDAQ

3. Pinduoduo Inc. (NASDAQ: PDD)

Number of Hedge Fund Holders: 56   

Pinduoduo Inc. (NASDAQ: PDD) is a retailer that focuses on agriculture-related products. Amid the dramatic rise of ecommerce platforms, the firm has established a name for itself among the rural user base in China, something that other retail giants have struggled with in recent years. The company has doubled down on this brand recognition, pledging to sell $145 billion worth of farm produce on its platform by 2025. In 2019, estimates suggested that almost 12 million farmers in the country supplied their produce to merchants who used Pinduoduo to sell products. 

Pinduoduo Inc. (NASDAQ: PDD) recently beat market estimates on revenue and earnings per share for the first quarter of 2021. Average monthly users on the platform increased 49% year-on-year during the period. The company’s shares have offered investors returns exceeding 47% over the past year. 

At the end of the first quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in Pinduoduo Inc. (NASDAQ: PDD), up from 54 in the preceding quarter worth $10.5 billion. 

In its Q1 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:

“Pinduoduo reported a strong quarter, reporting MAU of 720 million, now surpassing Taobao. However, it was overshadowed by a bigger news on Colin Huang resigning from Board and completely disassociating himself from PDD’s management & operation. Huang explained in his letter to shareholders that he would start fundamental research initiatives in food science. Although not entirely shocked (as he already stepped down from CEO July 2020), I am surprised by the fast pace of such transition. I remain confident in the organization and the culture Huang built but will monitor it closely.”