In this article, we discuss the top 9 Chinese stocks to buy today. You can skip our detailed analysis of these Chinese stocks and industry outlook, and go directly to see the Top 5 Chinese Stocks To Buy Today.
During the COVID-19 pandemic, global economies struggled as a result of the pandemic-driven slump, and emerging country China was not immune to this. In the first quarter of 2020, when the People’s Republic of China imposed nationwide lockdowns, the country’s GDP fell by 6.8%. However, the country was quick to recover with GDP rising by 18.3% in the first quarter of 2021. According to an article published by media conglomerate Bloomberg, China’s booming economy will overtake 56 countries in the world’s per-capita income ranking through 2025.
However, regulatory crackdowns in China are causing panic among investors. Cloud computing, real estate, fintech, and gaming are among the industries under pressure as a result of regulatory restrictions. E-commerce and cloud computing giant Alibaba Group Holding Limited (NYSE:BABA) would be one of the companies most affected by China’s order to migrate data from private cloud computing operators to a state-backed cloud system by September 2022.
According to CNBC, China implemented a new data privacy regulation named the Personal Information Protection Law (PIPL) on August 20, which will take effect in November 2021. The major data privacy regulation is China’s third data policy, following anti-monopoly rules enacted last year and draft rules aimed at preventing unfair competition on the internet issued on August 17. Following this, analysts predicted that the rate of new regulations would slow and that the tech giants would continue to grow.
Jack Ma
Our Methodology
Insider Monkey tracks data of about 873 hedge funds, which we have used to pick the Chinese stocks popular among hedge funds.
Top 9 Chinese Stocks To Buy Today
9. Weibo Corporation (NASDAQ:WB)
Number of Hedge Fund Holders: 14
Weibo Corporation (NASDAQ:WB) ranks ninth on the list of top 9 Chinese stocks to buy today. The Chinese social network company was founded in 2010 and grew its user base to over 486 million users in 2019. It has a robust platform for social interaction, as well as content collection and distribution.
On August 20th, HSBC analyst Charlene Liu upgraded Weibo Corporation (NASDAQ:WB) to a Hold rating from a Reduce rating with a $51 per share price target, following user growth post in the second quarter of 2021.
By the end of the second quarter of 2021, 14 hedge funds out of the 873 tracked by Insider Monkey held stakes in Weibo Corporation (NASDAQ:WB) worth approximately $128 million. This is compared to 12 hedge funds in the previous quarter with a total stake value of roughly $118 million.
8. Dada Nexus Limited (NASDAQ:DADA)
Number of Hedge Fund Holders: 18
The China-based holding company was founded in 2014. Dada Nexus Limited (NASDAQ:DADA) operates on-demand retail and delivery platforms through its JD-Daojia (JDDJ) and Dada Now.
Earlier this year, e-commerce giant JD.com, Inc. (NASDAQ:JD) invested over $800 million in Dada Nexus Limited (NASDAQ:DADA).
By the end of the second quarter of 2021, 18 hedge funds out of the 873 tracked by Insider Monkey held stakes in Dada Nexus Limited (NASDAQ:DADA) worth approximately $160 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of around $157 million.
7. KE Holdings Inc (NYSE:BEKE)
Number of Hedge Fund Holders: 31
KE Holdings Inc (NYSE:BEKE) operates an integrated platform for housing transactions and services. The company was founded in 2001 and has raised its mobile monthly active user base to over 52.1 million in 20 years.
Recently, Barclays analyst Jiong Shao said in a note to investors that KE Holdings (NYSE:BEKE) has become an accurate and reliable source for real estate listings. Shao gave a $29 price target to BEKE.
Earlier this year, KE Holdings Inc (NYSE:BEKE) entered a definitive agreement to purchase Shengdu Home Renovation Company Limited for around $1.23 million. The acquisition will improve the home renovation brand of the company.
By the end of the second quarter of 2021, 31 hedge funds out of the 873 tracked by Insider Monkey held stakes in KE Holdings Inc (NYSE:BEKE) worth roughly $2.71 billion. This is compared to 33 hedge funds in the previous quarter with a total stake value of approximately $2.30 billion.
6. Vipshop Holdings Limited (NYSE:VIPS)
Number of Hedge Fund Holders: 36
Vipshop Holdings Limited (NYSE:VIPS) was founded in 2008 and started trading in the NYSE in 2012. VIPS operates an e-commerce website, VIP.com, that offers a discount for anything from apparel, sportswear, cosmetic goods, home and lifestyle products and luxury items.
By the end of the second quarter of 2021, 36 hedge funds out of the 873 tracked by Insider Monkey held stakes in Vipshop Holdings Limited (NYSE:VIPS) worth approximately $1.30 billion. This is compared to 54 hedge funds in the previous quarter with a total stake value of approximately $1.34 billion.
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Disclosure: None. Top 9 Chinese Stocks To Buy Today is originally published on Insider Monkey.
