In this article, we discuss the top 9 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.
5. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 41
Ranking fifth on the list of top 9 Chinese stocks to buy today is Trip.com Group Limited (NASDAQ:TCOM). The Shanghai-based multinational online travel company provides an all-in-one traveling experience with its packaged tours and travel management. The platform is being used by over 400 million customers worldwide.
In 2020, Trip.com Group Limited (NASDAQ:TCOM) acquired travel website operator Travix International. The acquisition will give TCOM an Amsterdam-based set of brands.
By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in Trip.com Group Limited (NASDAQ:TCOM) worth roughly $1.99 billion. This is compared to 35 hedge funds in the previous quarter with a total stake value of approximately $2.14 billion.
4. NetEase, Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 43
NetEase, Inc. (NASDAQ:NTES) is an internet technology company that develops and markets online games, email services, and e-commerce.
Recently, NetEase, Inc. (NASDAQ:NTES) released plans of launching its Naraka:Bladepoint to international gamers in hopes of generating 50% of its gaming revenue from overseas. The game combines Chinese culture with the battle royale action.
By the end of the second quarter of 2021, 43 hedge funds out of the 873 tracked by Insider Monkey held stakes in NetEase, Inc. (NASDAQ:NTES) worth roughly $3.72 billion. This is compared to 32 hedge funds in the previous quarter with a total stake value of around $3.50 billion.
3. Bilibili Inc. (NASDAQ:BILI)
Number of Hedge Fund Holders: 47
Bilibili Inc. (NASDAQ:BILI) in August 2021 released 16 new games, setting a record.
By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Bilibili Inc. (NASDAQ:BILI) worth roughly $2.00 billion. This is compared to 53 hedge funds in the previous quarter with a total stake value of around $3.01 billion.
Baillie Gifford mentioned Bilibili Inc. (NASDAQ:BILI) in its Q2 2021 investor letter:
“One of the most important cognitive elements, is our recognition that consumer patterns and attitudes are evolving increasingly rapidly and with ever greater amplitude. While the human needs for self-actualisation, esteem and belonging are innate and immutable, they are being expressed in new ways. Tastes are being shaped by social groups who are culturally similar but geographically distant. The lines between the physical and digital-self continue to blur.
To those in the throes of middle age, this can be discombobulating. I profess to unease when my daughter recently earned five pounds stacking logs – only to ‘blow’ this pocket money on a pair of virtual Gucci sneakers for her online Roblox character. But we need to be imaginative about the possible size of the market for virtual luxury in the long term and it’s encouraging to observe that Kering is already on the front foot. It is also amply clear that the experienced Long Term Global Growth investors who predate Generations Y & Z, need the help of colleagues in understanding the mood and aspirations of a new cohort of conscious consumers. In this sense, the multigenerational and multicultural dynamic within the LTGG team (and indeed across the broader Baillie Gifford investment floor), has never seemed more important.
Meanwhile, it was our Shanghai-based colleagues who patiently educated us on the potential for the new holding in Bilibili – the fastest growing mainstream entertainment portal for Chinese teenagers and young adults. Bilibili’s range of video, gaming and anime comic content is formidable (and hugely under monetised) but the registration process for any budding Bilibili curator or commentator involves a test with one hundred multiple choice questions on topics including copyrights, commentary etiquette, platform neologism and – à la Mastermind – niche questions based on topics of the entrant’s choosing. To western observers, this is bemusing because every successful social platform in the west is focussed on reducing registration friction. But for Bilibili, the initiation ritual of the entrance exam cements the bond that users have with the platform, aligning them with the existing community to drive a stickier userbase and fewer trolls – a dynamic that is so easy for a cognitively narrow stock market to overlook.”
2. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 59
Baidu, Inc. (NASDAQ:BIDU) ranks second on the list of top 9 Chinese stocks to buy today. The multinational technology company was founded in 2000. Baidu, Inc. (NASDAQ:BIDU) operates one of the largest search engines in China with over 222 million daily active users.
By the end of the second quarter of 2021, 59 hedge funds out of the 873 tracked by Insider Monkey held stakes in Baidu, Inc. (NASDAQ:BIDU) worth roughly $3.47 billion. This is compared to 89 hedge funds in the previous quarter with a total stake value of approximately $6.57 billion.
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 146
Barclays analyst Jiong Shao recently called Alibaba his “top pick” and gave the stock and Overweight rating, with a $275 price target.
The analyst likes Alibaba due to its “sheer market size” and believes the company is positioned to grow despite some losses amid tough competition in the country.
By the end of the second quarter of 2021, 146 hedge funds out of the 873 tracked by Insider Monkey held stakes in Alibaba Group Holding Limited (NYSE:BABA) worth roughly $16.79 billion. This is compared to 135 hedge funds in the previous quarter with a total stake value of approximately $15.49 billion.
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Disclosure: None. Top 9 Chinese Stocks To Buy Today is originally published on Insider Monkey.
