Hedge Funds are Selling These 5 Chinese Stocks Amid Crackdowns

3. Bilibili Inc. (NASDAQ:BILI)

Number of Hedge Fund Holders in Q2: 47   

Number of Hedge Fund Holders in Q1: 53 

Bilibili Inc. (NASDAQ:BILI) is a Shanghai-based company that provides online entertainment services, including live broadcasting. It is ranked third on our list of 10 Chinese stocks hedge funds are selling amid crackdowns.

On August 20, investment advisory HSBC maintained a Buy rating on Bilibili Inc. (NASDAQ:BILI) stock but lowered the price target to $127 from $140, underlining that the potential outperformance in non-game would offset weaker game contribution for the firm. 

At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Bilibili Inc. (NASDAQ:BILI), down from 53 in the preceding quarter worth $3 billion. 

In its Q4 2020 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Bilibili Inc. (NASDAQ:BILI) was one of them. Here is what the fund said:

“Bilibili (ticker:BILI) similarly reported a blast Q3 2020. Bilibili reached average MAU of 197m with high 7.6% pay ratio, showing strong user growth and high engagement. Additionally, the high margin advertisement segment showed exceptionally strong trend, growing 126% yoy. Though surprising to many, I think it is a natural outcome of building an ever-more valuable user generated contents platform. If it is not by ads, I believe these values created by Bilibili will accrue to it in other ways. One interesting data point is that management mentioned the average age of new cohorts are still around 20, indicating it is still in its early stage of a long growth runway. I am happy to see this position played out like how I envisioned in original thesis and will be excited to continue to follow its progress.”