Analysts Think These 5 Chinese Stocks Could Rebound in 2022

In this article, we discuss the 5 Chinese stocks that could rebound in 2022 according to analysts. If you want our detailed analysis of the Chinese economy, go directly to Analysts Think These 10 Chinese Stocks Could Rebound in 2022. 

5. Bilibili Inc. (NASDAQ:BILI)

Number of Hedge Fund Holders: 35

Bilibili Inc. (NASDAQ:BILI) is a Chinese company providing online entertainment in the form of content, videos, mobile games, and comics. The Shanghai-based Bilibili Inc. (NASDAQ:BILI) allows user generated content and live streaming on its platform as well. The stock fell approximately 75% in the last 12 months owing to the Chinese regulations on tech.

Binnie Wong of HSBC stated in March 2021 that Bilibili Inc. (NASDAQ:BILI) will “definitely” be able to reach its goal of doubling its user base by 2023. The analyst believes that Bilibili Inc. (NASDAQ:BILI) is one of the best self-driving and self-transformation stories from China, given revenue and user growth. The company offers ad platforms, commerce, video games, and online content, which makes it a significant internet play. The regulatory headwinds are tricky for Bilibili Inc. (NASDAQ:BILI), like many Chinese names, but the company has delivered on all its promises since its IPO. Bilibili Inc. (NASDAQ:BILI) is a multi-year story in the short video market and investors should look out for the stock. 

On January 20, Citi analyst Brian Dapeng Gong lowered the price target on Bilibili Inc. (NASDAQ:BILI) to $61 from $120 and kept a Buy rating on the shares. The analyst expects Bilibili Inc. (NASDAQ:BILI)’s Q4 results to be largely in line with consensus.

As of Q3 2021, 35 hedge funds were long Bilibili Inc. (NASDAQ:BILI), down from 47 funds in the preceding quarter. Although elite hedge funds trimmed their stake in Bilibili Inc. (NASDAQ:BILI) in the third quarter due to the Chinese regulatory backdrop, billionaire Stephen Mandel’s Lone Pine Capital acquired a position in Bilibili Inc. (NASDAQ:BILI) in Q3, buying 8.6 million shares worth approximately $570 million. 

Here is what Tao Value has to say about Bilibili Inc. (NASDAQ:BILI) in its Q3 2021 investor letter:

“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We also exited Bilibili (ticker: BILI), given its priced-in valuation in the context of Chinese ADR confidence loss.”