Hedge Funds are Selling These 5 Chinese Stocks Amid Crackdowns

2. Pinduoduo Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders in Q2: 49   

Number of Hedge Fund Holders in Q1: 56 

Pinduoduo Inc. (NASDAQ:PDD) is placed second on our list of 10 Chinese stocks hedge funds are selling amid crackdowns. The firm owns and runs an online ecommerce platform and is headquartered in Shanghai. 

On August 25, investment advisory Benchmark kept a Buy rating on Pinduoduo Inc. (NASDAQ:PDD) stock but lowered the price target to $156 from $176, noting that the firm had reported mixed second quarter earnings.  

At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $5.2 billion in Pinduoduo Inc. (NASDAQ:PDD), down from 56 in the preceding quarter worth $6.2 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.”