In this article, we will look at the top 15 Chinese companies listen on the Nasdaq.
China is the world‘s most populous country and the second largest economy in terms of nominal Gross Domestic Product (GDP). As a result, China’s economic growth has been a major driver of global economic growth since the late 1970s. During this period, the Chinese economy has grown at an average rate of 10 percent annually. In recent years, the Chinese economy has experienced a slowdown in growth as the country has transitioned from an export–driven economy to a more balanced and consumer–driven economy. This transition has brought about slower economic growth, but has also seen an increase in the quality of life for many Chinese citizens. In order to maintain its economic growth, China has implemented a number of reforms to its economic policies. These reforms include loosening monetary policy, encouraging private investment, and shifting the focus away from heavy industry and towards services and consumer–oriented industries.
“Extremely Bullish Setup For China”
On December 9 Marko Papic, Partner and Chief Strategist at Clocktower Group, appeared in an interview on CNBC where he discussed why he thinks “Chinese stocks could very well be the best performers in the world” as we head into 2023. Marko Papic noted that exports have declined in 2022 as consumer focus has shifted from goods to services. Moreover, Fed tightening and interest rate hikes across the globe have caused Chinese exports to dampen. However, Papic noted that “Chinese policy makers know that, and have been extremely aggressive post the October congress, in terms of having these 180-degree pivots. Not just in zero-Covid policy, but also real estate, on PBOC’s liquidity injections, and on fiscal policies. So this is an extremely bullish setup for China”. Marko Papic further said that “in terms of a trade for the next six months, Chinese stocks could very well be the best performers in the world” and that the Chinese economy is “stimulating on all cylinders”.
According to a Bloomberg survey, China’s economy is expected to grow at a rate of 4.8% in 2023, and record an estimated 3% growth rate in 2022, triggered by the ending of the zero-Covid policy in the region. Major Wall Street banks have revised their growth forecasts for China and have turned bullish on Chinese stocks. In this piece, we will discuss the top 15 Chinese companies listed on the Nasdaq which include Pinduoduo Inc. (NASDAQ:PDD), JD.Com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU).
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Our Methodology
We screened for top Chinese companies and filtered out the ones that are being traded on the Nasdaq. Along with each company, we have talked about its business model, market position, and financials. We have also included the analyst ratings and top institutional investors for each company. These companies are ranked according to their popularity among elite money managers, from least to most.
Top 15 Chinese companies on NASDAQ
15. Dada Nexus Limited (NASDAQ:DADA)
Number of Hedge Fund Holders: 8
Dada Nexus Limited (NASDAQ:DADA) operates a leading on-demand retail and delivery platform in China. The company offers intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, SME merchants, and individual senders. Dada Nexus Limited (NASDAQ:DADA) is gaining traction in the Chinese e-commerce market and is well positioned to benefit from the rapid growth of the Chinese e-commerce market. Dada Nexus Limited is one of the top Chinese companies listed on the Nasdaq.
Wall Street is bullish on Dada Nexus Limited. On November 14, Mizuho analyst Wei Fang revised his price target on Dada Nexus Limited to $13 from $16.50 and maintained a Buy rating on the shares.
As of September 30, Hel Ved Capital is the top investor in Dada Nexus Limited and has a position worth $5.43 million in the company.
14. Canaan Inc. (NASDAQ:CAN)
Number of Hedge Fund Holders: 9
Canaan Inc. (NASDAQ:CAN) is a Chinese leader in the blockchain, Bitcoin mining, and artificial intelligence. The company designs, manufactures and sells high-performance computing hardware, such as application-specific integrated circuits (ASICs), and is also one of the largest manufacturers of bitcoin mining hardware. Canaan Inc. has a strong global presence and has access to a wide range of markets and customers, enabling it to capitalize on opportunities in different regions. Canaan Inc. is a top Chinese company that is trading on the Nasdaq.
On October 24, Canaan Inc. launched the Avalon A13 Bitcoin mining machines, the company’s next-gen hardware for Bitcoin mining.
As of September 30, Polunin Capital is the largest shareholder in Canaan Inc. and has stakes worth $4.6 million in the company.
Some of the largest Chinese companies listed on the Nasdaq include Pinduoduo Inc., JD.Com, Inc., and Baidu, Inc..
13. Niu Technologies (NASDAQ:NIU)
Number of Hedge Fund Holders: 9
Niu Technologies (NASDAQ:NIU) is a leading provider of smart electric scooters for personal transportation. The company designs, manufactures, and sells its electric scooters through an online platform and network of stores across the globe. The company’s products are designed to offer a convenient and eco-friendly way to get around. Niu Technologies has seen significant growth in recent years and is committed to innovation, releasing new models of its electric scooters as well as accessories and services. Niu Technologies is one of the top Chinese companies on the Nasdaq.
On December 15, Citi analyst Beatrice Lam maintained her $6.70 price target and a Buy rating on Niu Technologies.
As of September 30, ARK Investment Management is the dominant shareholder in Niu Technologies. The fund’s stakes are valued at $9.4 million.
12. Bilibili Inc. (NASDAQ:BILI)
Number of Hedge Fund Holders: 13
Bilibili Inc. (NASDAQ:BILI) is a Chinese online entertainment platform for young generations. Founded in 2009, the company provides a platform for users to watch, create, and share their own content, as well as interact with others. The platform is home to a wide variety of content, including comics, anime, games, music, live streaming, and more. Bilibili Inc. has grown rapidly in recent years, and is now one of the most popular platforms in China. The company is one of the top Chinese companies on trading on the Nasdaq.
On November 29, Bilibili Inc. posted earnings for the fiscal third quarter of 2022 in which the company outperformed EPS estimates by $0.15. The company reported a revenue of $809.27 million and outperformed revenue expectations by $19.94 million. On December 12, UBS analyst Felix Liu started coverage of Bilibili Inc. with a Buy rating and HK$250 price target.
At the end of Q3 2022, Yiheng Capital was the largest stakeholder in Bilibili Inc. and held a position worth $157 million in the company.
11. iQIYI, Inc. (NASDAQ:IQ)
Number of Hedge Fund Holders: 19
iQIYI, Inc. (NASDAQ:IQ) is a top Chinese online entertainment service provider that is listed on the Nasdaq. The company offers a wide range of services including a video streaming platform, original content production and distribution, online literature and gaming, and advertising services. The company has been able to establish a strong competitive advantage in the Chinese online entertainment market due to its various strategic initiatives. iQIYI, Inc. has built an extensive library of original content to offer its users. The company has invested heavily in artificial intelligence (AI) technology to offer a more personalized user experience. Its AI-enabled recommendation engine provides users with tailored content recommendations, while its AI-enabled video streaming technology ensures a high-quality streaming experience.
Wall Street is positive on iQIYI, Inc.. This December, JPMorgan analyst Daniel Chen updated his price target on iQIYI, Inc. to $6 from $7 and reiterated an Overweight rating on the shares.
At the end of the third quarter of 2022, Oasis Management held the largest stake in iQIYI, Inc.. The fund’s stakes were valued at $63.76 million.
10. Kanzhun Limited (NASDAQ:BZ)
Number of Hedge Fund Holders: 19
Kanzhun Limited (NASDAQ:BZ) operates a leading recruitment platform that connects job seekers and employers. The company offers a wide range of services, including job postings, candidate search, employer branding, and job search assistance. It also provides a range of recruitment tools, including job alerts, search agents, and resume databases. Additionally, it offers a variety of employer features, such as the ability to post jobs and search for candidates, access to a talent pool, and customized recruiting campaigns. Kanzhun Limited has seen tremendous growth since its inception and is now one of the world’s leading online recruitment platforms.
On November 29, Kanzhun Limited posted strong earnings for the fiscal third quarter of 2022. The company reported an EPS of $0.11 and outperformed consensus by $0.04. The company generated a revenue of $164.62 million and beat revenue estimates by $3.10 million.
This November, Goldman Sachs analyst Timothy Zhao upgraded Kanzhun Limited to Buy from Neutral and revised his price target to $23 from $27.50. The analyst expects accelerating revenue growth for China’s largest online recruitment platform as we head into 2023. Kanzhun Limited is one of the top Chinese companies listed on the Nasdaq.
As of September 30, Tiger Global Management LLC has a position worth over $300 million in Kanzhun Limited and is the largest investor in the company.
9. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 20
Li Auto Inc. (NASDAQ:LI) is a Chinese electric vehicle manufacturer that focuses on developing and producing premium electric vehicles with extended range. Founded in 2015, the company has become a leader in the Chinese electric vehicle market, with its flagship Li ONE model being one of the best–selling extended range electric vehicles in the country. Li Auto Inc. (NASDAQ:LI) is an ambitious company with a strong commitment to providing the Chinese market with premium electric vehicles. With its strong focus on innovation and research and development, the company is well–positioned to continue its growth and become a leader in the global electric vehicle market. Li Auto Inc. is one of the top Chinese Nasdaq-listed companies.
On November 28, Jefferies analyst Johnson Wan took coverage of Li Auto Inc. with a $20.66 price target and a Buy rating. On December 1, Li Auto Inc. announced that the company delivered 15,034 vehicles in November, up 11.5% year-over-year.
At the end of Q3 2022, Tiger Global Management LLC was the top shareholder in Li Auto Inc. and held a position worth $396 million in the company.
8. Hollysys Automation Technologies Ltd (NASDAQ:HOLI)
Number of Hedge Fund Holders: 20
Hollysys Automation Technologies Ltd (NASDAQ:HOLI) is a leading provider of industrial automation and control systems, including distributed control systems (DCS), programmable logic controllers (PLC), and supervisory control and data acquisition (SCADA) systems. Hollysys Automation Technologies Ltd has over 20 years of experience in industrial automation, and is one of the largest suppliers of automation systems and services in China. The company’s shares have surged over 17% year to date, as of December 16. Hollysys Automation Technologies Ltd is one of the top Chinese companies on Nasdaq.
On November 15, Hollysys Automation Technologies Ltd posted earnings for the first quarter of fiscal 2023. The company reported a non-GAAP EPS of $0.37 and generated a revenue of $170.04 million, up 10.9% year over year. The company also reported that its cash and cash equivalents, as of September 30, sit at $575.1 million.
As of September 30, Yiheng Capital is the dominant investor in Hollysys Automation Technologies Ltd and has a position worth $67.78 million.
7. Zai Lab Limited (NASDAQ:ZLAB)
Number of Hedge Fund Holders: 24
Zai Lab Limited (NASDAQ:ZLAB) is a leading Chinese biotechnology company. The company specializes in the research, development, and commercialization of innovative medicines for the treatment of cancer, infectious diseases, and autoimmune and inflammatory diseases. Zai Lab Limited has a strong presence in Greater China and is expanding into the global market. Zai Lab Limited (NASDAQ:ZLAB) is one of the top Nasdaq-listed Chinese companies.
As of November 11, Citi analyst Yigal Nochomovitz has a $127 price target and a Buy rating on Zai Lab Limited.
At the close of Q3 2022, Viking Global is the top investor in Zai Lab Limited and has disclosed a position worth $89.4 million in the company.
6. NetEase, Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 24
NetEase, Inc. (NASDAQ:NTES) is an internet technology company based in China. The company is one of the largest internet companies in China and is one of the top Chinese companies listed on the Nasdaq. NetEase, Inc. offers a variety of services, including an online gaming platform, e-commerce, and web services, as well as a wide range of media and content products.The company continues to invest heavily in new technologies and products while expanding its customer base and is well-positioned to retain its leading status in China’s internet technology market.
Analysts are bullish on NetEase, Inc.. This December, Morgan Stanley analyst Alex Poon raised his price target on NetEase, Inc. to $95 from $85 and reiterated an Overweight rating on the shares.
As of September 30, Orbis Investment Management is the largest shareholder in NetEase, Inc. and has a position worth $274.6 million in the company.
Like Pinduoduo Inc., JD.Com, Inc., and Baidu, Inc., NetEase, Inc. is gaining traction among institutional investors and was held by 24 hedge funds at the close of Q3 2022.
5. H World Group Limited (NASDAQ:HTHT)
Number of Hedge Fund Holders: 29
H World Group Limited (NASDAQ:HTHT) is a leading hotel group in China. Founded in 2005, the company operates over 8,000 hotels in China and overseas. The company is dedicated to providing high-quality accommodation and related services for both business and leisure travelers. The company operates several hotel brands, including Grand Mercure, Mercure, Novotel, ibis, ibis Styles, and HanTing Hotel. H World Group Limited is one of the largest hotel groups in China and one of the top Chinese companies that are listed on the Nasdaq.
On October 27, Daiwa analyst Carlton Lai upgraded H World Group Limited to Buy from Outperform and revised his price target to $34 from $43.
At the end of the third quarter of 2022, H World Group Limited was held by 29 hedge funds that had stakes worth $482.2 million in the company.
4. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 42
Trip.com Group Limited (NASDAQ:TCOM) is a leading online travel service provider, offering a range of travel-related services, including accommodation reservations, transportation ticketing, packaged tours and corporate travel management. With its headquarters in Shanghai, China, the company operates in more than 200 countries and regions worldwide. Trip.com Group Limited is on our list of the top Chinese companies trading on the Nasdaq.
On December 16, UBS analyst Wei Xiong upgraded Trip.com Group Limited to Buy from Neutral and raised his price target to $41 from $28.
As of September 30, Pzena Investment Management is the largest investor in Trip.com Group Limited and has stakes worth $277.9 million in the company.
Here is what Harding Loevner had to say about Trip.com Group Limited in its third-quarter 2022 investor letter:
“Our other new Chinese holding is a familiar one: Trip.com Group Limited (NASDAQ:TCOM) , which we’ve previously held, is responsible for half of China’s online travel bookings. Among its more than 50,000 travel partners are many upscale hotels, and this abundance of choice continues to attract a vast user base. Trip.com’s international footprint has broadened through its subsidiary Skyscanner, a UK platform, and a partnership with TripAdvisor of the US. The company’s leadership has experience successfully guiding the business through highly competitive conditions. Increasing travel demand in a post-COVID-19 world opens the door to accelerated growth.”
3. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 43
Baidu, Inc. is one of the largest Chinese search engines and internet services companies. Founded in 2000, the company is headquartered in Beijing, China and is listed on the NASDAQ Stock Exchange. The company offers a variety of search, artificial intelligence, and other services, including Baidu App, Baidu Maps, Baidu Encyclopedia, Baidu Baike, Baidu Webmaster Tools, Baidu Takeout, Baidu Video, Baidu Image Search, and Baidu Tieba. Baidu, Inc. also offers cloud computing, online advertising, and online payment services. Baidu, Inc. is one of the top Chinese companies listed on the Nasdaq.
On December 6, Loop Capital analyst Rob Sanderson revised his price target on Baidu, Inc. to $167 from $185 and reiterated a Buy rating on the shares.
At the close of Q3 2022, Ariel Investments was the top shareholder in Baidu, Inc. and disclosed a position worth $305.6 million in the company.
Here is what Ariel Investments had to say about Baidu, Inc. in its third-quarter 2022 investor letter:
“China’s internet search and online community leader Baidu, Inc. (NASDAQ:BIDU) also weighed on relative results in the quarter. Continuing macro headwinds driven by China’s Zero-Covid policy are resulting in sluggish advertising trends. Looking ahead, the company remains committed to sustainable, profitable growth as management works to improve overall operational efficiency, executing on its strategic commitments around technological innovation and the transition to a green economy. We also continue to be enthusiastic about Baidu’s longer-term opportunity for revenue growth and margin expansion across internet search, cloud, autonomous driving, artificial intelligence and online video.”
2. Pinduoduo Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 54
Pinduoduo Inc. operates an online marketplace that provides customers with a convenient and engaging shopping experience. Founded in 2015, the company is one of the fastest-growing e-commerce companies in China. Pinduoduo Inc. has become one of the most popular shopping apps in China, with more than 750 million monthly active users. Pinduoduo Inc. also investing heavily in technologies such as artificial intelligence and machine learning to provide customers with personalized shopping recommendations. The company trades on the Nasdaq under ticker symbol “PDD” and is one of the top Nasdaq-listed Chinese companies.
On December 9, KGI Securities analyst Andrew Cheng upgraded Pinduoduo Inc. to Outperform from Neutral and reiterated a $110 price target on the shares.
As of September 30, GQG Partners is the most prominent shareholder in Pinduoduo Inc. and has a position worth $325.9 million in the company.
1. JD.Com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 67
JD.com, Inc. is an e-commerce company headquartered in Beijing, China. It is one of the largest online direct sales company in China by revenue, and also one of the largest e-commerce companies in the world. It offers an extensive selection of authentic products at competitive prices, delivered to customers’ doorsteps. It also offers a wide range of services, including financing and logistics. JD.Com, Inc. is among the top Chinese companies listed on the Nasdaq.
On November 21, Barclays analyst Jiong Shao raised his price target on JD.Com, Inc. to $72 from $59 and reiterated an Overweight rating on the shares.
As of September 30, Tiger Global Management LLC is the dominant investor in JD.Com, Inc. and has stakes worth $1.5 billion in the company.
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This article is originally published at Insider Monkey.
