5 Top Chinese Companies on NASDAQ

2. JD.com, Inc. (NASDAQ: JD)

Number of Hedge Fund Holders: 75

JD.com, Inc. (NASDAQ: JD) is one of the largest ecommerce platforms in China. It has grown during the pandemic as the coronavirus lockdowns encouraged people to shop online. In the coming weeks, the stock is expected to soar further as a major shopping festival begins in China. In late May, the share price of the firm jumped more than 2.5% as the firm reported strong earnings results for the first fiscal quarter, beating market expectations on revenue and reporting a 49% year-on-year increase in monthly active users.

JD.com, Inc. (NASDAQ: JD) had announced in late March that it would be selling its artificial intelligence and cloud businesses worth over $2.4 billion. The businesses would be sold to JD Digits, the fintech arm of JD.com, Inc. (NASDAQ: JD). 

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC  is a leading shareholder in the firm with 51.6 million shares worth more than $4.3 billion. 

In its Q1 2021 investor letter, Arisaig Partners, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ: JD) was one of them. Here is what the fund said:

“Our largest holding as a firm, JD.com, we expect to grow earnings at an annualised rate of 30% over the next five years, implying it will trade on an EV / EBITDA of 7.5x at the end of this period. Is this a growth stock or a value stock? Does anyone care? Do these labels really matter?

For the Asia Fund, with a higher pre-existing allocation to our core FMCG holdings coming into the year, we took advantage of capital market volatility to further concentrate on our highest conviction names. JD.com has been the main destination for our limited reallocations as evidence continues to emerge supporting our thesis that the company has a strong right-to-win in the large and highly fragmented USD1.8th Chinese grocery market. We have also been encouraged by the fact that after years of persistence, the company is beginning to engage with us on ESG issues (we have specifically discussed data protection, climate change and the circular economy). ESG is now being considered at the board level, and specific sustainability reporting should follow in the coming months. Having long displayed a healthy obsession with customer service, we interpret these latest conversations as a sign that JD is beginning to develop a more sophisticated understanding of its impact on all stakeholders.”