China Internet Regulation Poses New Risks for PDD Holdings (PDD)

PDD Holdings Inc. (NASDAQ:PDD) ranks among the best high growth Chinese stocks to buy. Morgan Stanley reaffirmed an Overweight rating on PDD Holdings Inc. (NASDAQ:PDD) on January 15, with a $148 price target, though it removed the company from its Top Pick list due to growing regulatory worries and market uncertainty for the Chinese internet sector.

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The firm pointed to the General Office of Anti-Monopoly and Anti-Unfair Competition Commission’s recent probe into food delivery platforms, as well as SAMR’s anti-monopoly inquiry into TCOM, as signs of increased regulatory risks for China’s internet industry.

Morgan Stanley also noted that China’s delayed consumer recovery may pose additional hurdles for e-commerce services, like PDD Holdings Inc., in 2026.

Meanwhile, Freedom Capital Markets increased its price target for PDD Holdings Inc. to $170 from $140 on January 6, while keeping a Buy rating on the company. The firm stated that it had demonstrated resilience by responding to US tariffs and eliminating the de minimis duty-free level for imports from China.

PDD Holdings Inc. is a global commerce company that operates several businesses, including two key ventures: Pinduoduo and Temu. Pinduoduo is an e-commerce platform with a wide range of products, whereas Temu is an online marketplace that specializes in heavily discounted consumer goods.

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This article is originally published at Insider Monkey.