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20 Chinese Companies Listed on NYSE/NASDAQ/AMEX

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·25 min read
In this article:
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In this article, we discuss the 20 Chinese companies listed on NYSE/NASDAQ/AMEX. If you want to skip our detailed analysis of these companies, go directly to the 5 Chinese Companies Listed on NYSE/NASDAQ/AMEX.

The trade tension between the United States and China over the past few years has dominated headlines around the world, fueling speculation around a second Cold War or a financial crisis worse than the Great Depression of the early twentieth century. However, for investors who can look through the sensational reporting of novice news correspondents, one key statistic highlights how any negotiations over trade may play out for both countries. This statistic is the trade deficit. In 2017, the US trade deficit was $375 billion.

This was because the US exports to China stood at $130 billion that year while the imports from China were well over $500 billion. This deficit, despite falling 10% in 2020, hit a record high, totalling $535 billion in the pandemic year. One of the major sources of this disparity is the roaring business that Chinese firms do in the US every year. Some of the most active and high-profile Chinese stocks presently trading in the US include Alibaba Group Holding Limited (NYSE: BABA), Baidu, Inc. (NASDAQ: BIDU), and NIO Inc. (NYSE: NIO), among others.

Although US-based multinationals also do good business in China, the equation is heavily skewed in the Chinese favor overall. Alibaba Group Holding Limited (NYSE: BABA), the Hangzhou-based ecommerce firm, is one of the most active stocks on the US market. Although the firm has come under regulatory pressure in Beijing, the basic business fundamentals of the company are strong enough for it to attract a swathe of US-based investors in the coming weeks and months.

Similarly, Baidu, Inc. (NASDAQ: BIDU) and NIO Inc. (NYSE: NIO) have also posted strong earnings and product sales numbers in recent months, buoying investors who are betting on the companies to make a strong comeback after a disappointing 2020 that saw businesses suffer across the globe. In addition to these firms, some other Chinese stocks have also been attracting attention on Wall Street. They are listed below. It remains to be seen how these firms navigate inflation tailwinds and a government crackdown in China for the remaining part of the fiscal year. However, if history is any guide, these firms look set to beat market expectations.

China's Crackdown Against US IPOs

The Chinese government crackdown against dual-listed companies has left investors scratching their heads. The recent initial public offering (IPO) of DiDi Global Inc. (NYSE: DIDI), the Chinese mobility technology platform that is valued at over $54 billion, illustrates how Beijing is clamping down on Chinese IPOs in the US. DiDi Global Inc. (NYSE: DIDI) went public late last month, ignoring warnings from a watchdog in China to delay the listing in order to examine security protocols more thoroughly. Immediately after the IPO, the Chinese government launched a cybersecurity investigation into the firm, sending the share price plunging.

In early July, the Chinese cabinet affirmed that it would increase supervision on all Chinese firms listed offshore and tighten rules for cross-border data flows. This shift is expected to affect not only already dual-listed firms but also those who plan to debut in the US in the coming months. Commenting on the developments, Fred Hu, the chief of of Primavera Capital Group. a China-based investment firm, told news agency Reuters that Chinese firms planning to list in the US might have to pause or even abandon listings amid mounting uncertainties and confusions. This is likely to have serious ramifications for both China and the US. According to data from Dealogic, a financial markets platform, Chinese firms have hauled in more than $13 billion from initial offerings in 2020, the highest total since Alibaba Group Holding Limited (NYSE: BABA) went public in 2014 at a valuation of $25 billion, pushing the total that year to a record $29 billion. The US government is also pushing for more transparency with regards to Chinese firms. A new law, passed last year, puts Chinese firms at risk of de-listings in the coming years if US regulators do not gain access to their audit records.

The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Chinese Companies Listed on NYSE/NASDAQ/AMEX
Chinese Companies Listed on NYSE/NASDAQ/AMEX

Photo by Markus Winkler on Unsplash

With this context in mind, here is our list of the 20 Chinese companies listed on NYSE/NASDAQ/AMEX. These companies were ranked keeping in mind the basic business fundamentals, hedge fund sentiment, and analyst ratings for each.

Chinese Companies Listed on NYSE/NASDAQ/AMEX

20. Canaan Inc. (NASDAQ: CAN)

Number of Hedge Fund Holders: 9

Canaan Inc. (NASDAQ: CAN) is placed twentieth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The stock has returned 272% to investors over the past year. The company makes and sells integrated circuit products.

On June 23, Canaan Inc. (NASDAQ: CAN) announced that it had started Bitcoin mining operations in Kazakhstan. The move is part of a plan by the firm to improve finances and expand customer base globally.

At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $47 million in Canaan Inc. (NASDAQ: CAN), up from 4 the preceding quarter worth $3.8 million.

Just like Alibaba Group Holding Limited (NYSE: BABA), Baidu, Inc. (NASDAQ: BIDU), DiDi Global Inc. (NYSE: DIDI), and NIO Inc. (NYSE: NIO), Canaan Inc. (NASDAQ: CAN) is one of the Chinese companies listed on NYSE/NASDAQ/AMEX.

19. China Life Insurance Company Limited (NYSE: LFC)

Number of Hedge Fund Holders: 6

China Life Insurance Company Limited (NYSE: LFC) is an insurance firm based in Beijing. It is ranked nineteenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have dropped 30% in value over the past year.

On July 2, China Life Insurance Company Limited (NYSE: LFC) declared an annual dividend of $0.426 per share, payable to most shareholders in September and to some in July.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in China Life Insurance Company Limited (NYSE: LFC) with 785,411 shares worth more than $8 million.

18. 360 DigiTech, Inc. (NASDAQ: QFIN)

Number of Hedge Fund Holders: 19

360 DigiTech, Inc. (NASDAQ: QFIN) stock has returned 112% to investors over the past year. The firm is a fintech company that runs a digital consumer finance platform. It is placed eighteenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX.

On May 28, 360 DigiTech, Inc. (NASDAQ: QFIN) posted earnings for the first quarter of 2021, reporting a revenue of close to $550 million, up more than 22% year-on-year but missing market predictions by nearly $6 million.

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm GLG Partners is a leading shareholder in 360 DigiTech, Inc. (NASDAQ: QFIN) with 964,858 shares worth more than $25 million.

Just like Alibaba Group Holding Limited (NYSE: BABA), Baidu, Inc. (NASDAQ: BIDU), DiDi Global Inc. (NYSE: DIDI), and NIO Inc. (NYSE: NIO), 360 DigiTech, Inc. (NASDAQ: QFIN) is one of the Chinese companies listed on NYSE/NASDAQ/AMEX.

17. ZTO Express (Cayman) Inc. (NYSE: ZTO)

Number of Hedge Fund Holders: 15

ZTO Express (Cayman) Inc. (NYSE: ZTO) is ranked seventeenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have returned 1% to investors over the course of the past three months. The firm operates as a delivery and logistics provider in China.

On May 19, ZTO Express (Cayman) Inc. (NYSE: ZTO) posted earnings results for the first quarter of 2021, reporting earnings per share of $0.14, missing market estimates by $0.03. The revenue over the period was close to $1 billion, up 65% year-on-year.

At the end of the first quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $659 million in ZTO Express (Cayman) Inc. (NYSE: ZTO), down from 17 the preceding quarter worth $426 million.

16. Adagene Inc. (NASDAQ: ADAG)

Number of Hedge Fund Holders: 10

Adagene Inc. (NASDAQ: ADAG) is a biopharmaceutical company. It is placed sixteenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The stock has dropped 14% in value over the course of the past three months.

On July 7, Adagene Inc. (NASDAQ: ADAG) announced that the board of the firm had approved a share buyback program under which 20 million ordinary shares of the company would be repurchased using existing capital.

At the end of the first quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $18.8 million in Adagene Inc. (NASDAQ: ADAG).

Just like Alibaba Group Holding Limited (NYSE: BABA), Baidu, Inc. (NASDAQ: BIDU), DiDi Global Inc. (NYSE: DIDI), and NIO Inc. (NYSE: NIO), Adagene Inc. (NASDAQ: ADAG) is one of the Chinese companies listed on NYSE/NASDAQ/AMEX.

15. XPeng Inc. (NYSE: XPEV)

Number of Hedge Fund Holders: 19

XPeng Inc. (NYSE: XPEV) is an electric carmaker. It is ranked fifteenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have returned 16% to investors in the past three months.

On July 1, XPeng Inc. (NYSE: XPEV) reported vehicle delivery numbers for the month of June, announcing that it had delivered 6,565 electric vehicles through the month, a new record and a more than 600% increase year-on-year.

At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $976 million in XPeng Inc. (NYSE: XPEV), down from 30 the preceding quarter worth $820 million.

14. 51job, Inc. (NASDAQ: JOBS)

Number of Hedge Fund Holders: 18

51job, Inc. (NASDAQ: JOBS) is placed fourteenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The stock has returned 15% to investors in the past twelve months. It is a human resource firm based in Shanghai.

On June 21, 51job, Inc. (NASDAQ: JOBS) announced that it had signed a definitive agreement for a merger with Garnet Faith in a deal worth more than $5.5 billion.

Out of the hedge funds being tracked by Insider Monkey, Naples-based investment firm Pentwater Capital Management is a leading shareholder in 51job, Inc. (NASDAQ: JOBS) with 702,272 shares worth close to $43 million.

Just like Alibaba Group Holding Limited (NYSE: BABA), Baidu, Inc. (NASDAQ: BIDU), DiDi Global Inc. (NYSE: DIDI), and NIO Inc. (NYSE: NIO), 51job, Inc. (NASDAQ: JOBS) is one of the Chinese companies listed on NYSE/NASDAQ/AMEX.

13. Lufax Holding Ltd (NYSE: LU)

Number of Hedge Fund Holders: 9

Lufax Holding Ltd (NYSE: LU) is a fintech firm based in Shanghai. It is ranked thirteenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have dropped in value by 25 % in the past year.

On June 16, Lufax Holding Ltd (NYSE: LU) launched a new smart loans solution named Xingyun. The new solution is powered by artificial intelligence and improves access to financing by reducing loan processing times.

At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $208 million in Lufax Holding Ltd (NYSE: LU), down from 11 the preceding quarter worth $209 million.

12. GDS Holdings Limited (NASDAQ: GDS)

Number of Hedge Fund Holders: 40

GDS Holdings Limited (NASDAQ: GDS) stock has dropped in value by 18 % over the course of the past year. It is placed twelfth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company develops and operates data centres.

On May 19, GDS Holdings Limited (NASDAQ: GDS) reported earnings for the first quarter, posting earnings per share of -RMB0.21, missing market predictions by RMB0.06. The revenue over the period was RMB1.71 billion, up 37% year-on-year.

At the end of the first quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $2 billion in GDS Holdings Limited (NASDAQ: GDS), up from 39 in the previous quarter worth $2.8 billion.

Just like Alibaba Group Holding Limited (NYSE: BABA), Baidu, Inc. (NASDAQ: BIDU), DiDi Global Inc. (NYSE: DIDI), and NIO Inc. (NYSE: NIO), GDS Holdings Limited (NASDAQ: GDS) is one of the Chinese companies listed on NYSE/NASDAQ/AMEX.

In its Q1 2020 investor letter, Baron Asset Fund, an asset management firm, highlighted a few stocks and GDS Holdings Limited (NASDAQ: GDS) was one of them. Here is what the fund said:

“In the most recent quarter, we acquired shares of GDS Holdings Limited, the leading data center developer and operator in China serving the premier Chinese cloud service, e-commerce, social media/gaming, and internet players. Although we have not invested in many foreign-based companies, we believe that GDS represents a compelling opportunity. Its business shares many similarities with Equinix, Inc., a U.S.- based data center operator that has been a profitable long-term investment for the Fund. In addition, our real estate research team has met extensively with GDS management over the course of the last few years and has built increased confidence in the team’s growth aspirations and its ability to successfully execute them.

We believe that the Chinese data center industry remains in the earlier stages of its growth curve, and we believe it will experience one of the fastest multi-year growth rates globally as the Chinese government continues to support the rapid rollout of 5G connectivity. GDS’s current and future data centers support the critical IT infrastructure that empowers cloud adoption and enables numerous consumer and business applications. In addition to experiencing robust organic growth, GDS has accelerated its growth runway through select M&A. These acquisitions have allowed the company to obtain additional capacity in supply constrained markets at attractive prices. In addition, GDS has supplemented its dense urban strategy with a “campus strategy,” whereby it secures additional supplies of land and power on the outskirts of cities with minimal capital committed.

To provide some perspective on GDS’s growth rate, it signs more “bookings” in a single quarter than many global data center companies sign over the course of a year. Lastly, after two well received capital raises in 2019, GDS remains well funded with ample cash on its balance sheet to support multiple years of accelerated growth. GDS also has several deep-pocketed backers, including the Singaporean government’s investment fund, that have remained supportive of GDS’s growth plans and have participated in several of GDS’s capital raises. We believe there are many similarities to our other data center investments–GDS is earlier on its growth curve but growing at a much faster clip. We see a path for GDS to nearly triple its cash flow over the next few years, and we see a path to double our investment over that timeframe.”

11. Yum China Holdings, Inc. (NYSE: YUMC)

Number of Hedge Fund Holders: 34

Yum China Holdings, Inc. (NYSE: YUMC) is ranked eleventh on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have returned 29% to investors over the course of the past twelve months. The firm owns and runs several different restaurants in China.

Yum China Holdings, Inc. (NYSE: YUMC) is one of the best options on the market for those interested in earning a healthy income from stocks. On April 27, the firm declared a quarterly dividend of $0.12 per share, in line with previous. The forward yield was 0.8%.

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm GuardCap Asset Management is a leading shareholder in Yum China Holdings, Inc. (NYSE: YUMC) with 5.8 million shares worth more than $349 million.

10. NetEase, Inc. (NASDAQ: NTES)

Number of Hedge Fund Holders: 32

NetEase, Inc. (NASDAQ: NTES) stock has returned 11% to investors in the past year. It is placed tenth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The firm markets online gaming, commerce, and other services in China.

In quarterly earnings results, posted on May 18, NetEase, Inc. (NASDAQ: NTES) reported earnings per share of $1.14, beating market estimates by $0.17. The revenue over the period was more than $3 billion, up 30% year-on-year.

Out of the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in NetEase, Inc. (NASDAQ: NTES) with 18.2 million shares worth more than $1.8 billion.

9. KE Holdings Inc. (NYSE: BEKE)

Number of Hedge Fund Holders: 33

KE Holdings Inc. (NYSE: BEKE) is a firm that owns and runs an online real estate platform in China. It is ranked ninth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have dropped in value by 36% in the past six months.

On July 5, KE Holdings Inc. (NYSE: BEKE) announced that it had entered into a deal to purchase Shengdu Home Renovation. The transaction is expected to be completed by next year and is part of a plan by the firm to improve depth in home renovation solutions.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in KE Holdings Inc. (NYSE: BEKE) with 9.5 million shares worth more than $546 million.

In its Q3 2020 investor letter, Tao Value, an asset management firm, highlighted a few stocks and KE Holdings Inc. (NYSE: BEKE) was one of them. Here is what the fund said:

“KE Holding (Beike), a leading real estate transaction and services platform in China, recently IPO’d with a valuation of $23 billion. Despite the market sentiment upbeat, I see Beike could worth much higher than its current valuation and built a position at cost below $40 per share. As laid out below, my thesis is heavily around the founder CEO Zuo Hui & the culture of the company.

Tao: Beike is a combination of two distinct businesses – firstly an 18 years old household name off-line brokage business Lianjia, and the two years old online platform Beike Zhaofang. The history of Lianjia is a tale about how it single-handedly reshaped the real estate brokerage industry in China. In early years, real estate brokers/agents in China were more of less like “con artists”, who would try to rip off both buyers & sellers. Over the years, Lianjia adopted a strategy which charges higher but transparent commission rate (3%) and provides superiors services. It gradually pushed the industry to a modern & dignified position and ultimately captured almost 20% of the existing home sales market. It is a manifestation of its mantra of “to do the difficult but right thing”.

As strong as Lianjia, offline brokerage is not the best business from investors perspective. Beike Zhaofang, on the other hand, is a new attempt to solve the next difficult question of the industry – how to make different brokers/agents to work together to bring more value to customers? Building on Lianjia’s deep root in traditional brokerage business and wide geographical footprint, Beike launched an Agent Cooperation Network (ACN), consolidating information & processes from various stages of real estate transactions. It created fair allocation of credits for each step, attracting collaboration from different brokers/agents. I believe this MLS-like platform would be one of the best businesses in the world (huge TAM, low penetration, high scalability & strong network effect), and Beike with its hard earned market position, industry expertise & reputation is poised to capture majority of such value in China.

Meteorology: Real estate transaction market is a RMB 22 trillion market in China, with near 0 “MLS” penetration. Given the attractiveness of a platform business, there have been numerous attempts by other players (e.g. Fang Holdings expanded to offline circa 2016, FandDD’s platform for linking developers to consumers) but no home run yet. Why Beike can do differently this time? I think Beike’s deep understanding of the industry and its motivation to solve the right, but difficult problem are the key factors. From day one, Beike aimed to empower & incentivize brokers/agents to collaborate, which I think is the right way to evolve itself to a SaaS model. All the failed attempts didn’t have this deep understanding, ultimately evolved into ads (taking the easy way out) or commission (being brokers/agents) monetization models. Another recent attempt by Alibaba along with Yiju– “Tmall Haofang” is interesting, but I think Beike still has the up hand for its early start and on field know-how.

Topography: Beike is a market leader in offline brokerage business with wide margin, and the first mover in digital transformation. I believe the Agent Cooperation Network (ACN) is a game changer. In other countries, MLS (multiple listing service) created great value for agents, buyers & sellers. It tends to be a winner takes the most model with strong network effect yet is owned mostly by association or public. I think Beike ACN could have the potential to be the dominant network creating similar and more value for all stakeholders in real estate value chain. A clear extension (since China has less legacy) is to further digitalize mortgage & titling, each being large TAM vertical on its own.

Commander: founder CEO Zuo Hui is the key reason in my investment decision. I think Zuo is a hard-tocome-by mindful entrepreneur. Based on his two fundamental beliefs: 1) one should be honest & 2) business should be profitable, he made a hard decision to adopt a high but transparent commission rate in Lianjia’s early days. This decision appeared irrational at the time as Lianjia would not be able to compete with other lower (yet deceptive) commission competitors. Yet it is later proven to be an industry-shaking decision. Zuo wrote a thoughtful shareholder letter in its prospectus, articulating his vision and philosophy. The one key principle is “Do the right thing even if it’s difficult”. I believe an organization, who validated such principle in building and growing Lianjia, will have ripple effect on value creation in years to come.

Valuation: In the current market condition, I would admit the current valuation is silly to say the least. Even Beike is profitable, the profit mainly comes from the traditional brokerage business. But I think Beike Zhaofang alone could very likely be a $10 billion run rate business one day. I also believe there will be more innovation from Beike in the future creating significant value for all stakeholders.”

8. Bilibili Inc. (NASDAQ: BILI)

Number of Hedge Fund Holders: 53

Bilibili Inc. (NASDAQ: BILI) is a company that provides online entertainment services. It is placed eighth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The stock has returned 115% to investors in the past year.

On April 8, investment advisory Credit Suisse upgraded Bilibili Inc. (NASDAQ: BILI) stock to Outperform from Neutral with a price target of $140. The advisory noted the exceptional user growth of the firm compared to peers in the ratings update.

At the end of the first quarter of 2021, 53 hedge funds in the database of Insider Monkey held stakes worth $3.01 billion in Bilibili Inc. (NASDAQ: BILI), up from 46 in the preceding quarter worth $3.08 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.”

7. New Oriental Education & Technology Group Inc. (NYSE: EDU)

Number of Hedge Fund Holders: 45

New Oriental Education & Technology Group Inc. (NYSE: EDU) is ranked seventh on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The company’s shares have dropped in value by 53% over the course of the past year. The company provides a variety of private educational services in China.

On July 8, investment advisory Jefferies named New Oriental Education & Technology Group Inc. (NYSE: EDU) stock as one to watch out for as new Chinese tutoring policies took effect, removing uncertainties that had previously hindered share price growth.

At the end of the first quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in New Oriental Education & Technology Group Inc. (NYSE: EDU), up from 43 in the preceding quarter worth $2.5 billion.

In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and New Oriental Education & Technology Group Inc. (NYSE: EDU) was one of them. Here is what the fund said:

“New Oriental Education shares declined in the quarter, seemingly on account of two notable drivers. First, Chinese online education is currently under a regulatory microscope, although the online tutoring area is not central to New Oriental’s business. We continue to believe that, as a large player in a highly fragmented market, New Oriental is well-positioned to manage regulatory change and offers regulators an easier touchpoint to regulate and monitor than individual mom & pop operators.

As regulatory fears hit the after-school tutoring market, we think New Oriental, a leading player in brick-and-mortar after-school tutoring, could gain strength. We think the long-term backdrop for after-school tutoring remains quite favorable. Significant scale advantages and a highly cash generative model with just approximately 5% market share indicate that New Oriental has potential to grow at a high rate, in our opinion. Further, movements by another investor in New Oriental in late March 2021 prompted indiscriminate selling of shares. Those sales left shares trading at a compelling valuation, in our opinion, so we acted by adding to our position. We think New Oriental remains poised to grow earnings at approximately 25% annual rate in the coming years.”

6. Pinduoduo Inc. (NASDAQ: PDD)

Number of Hedge Fund Holders: 56

Pinduoduo Inc. (NASDAQ: PDD) operates an ecommerce platform in China. It is placed sixth on our list of 20 Chinese companies listed on NYSE/NASDAQ/AMEX. The stock has offered investors returns exceeding 22% over the course of the past twelve months.

Pinduoduo Inc. (NASDAQ: PDD) posted quarterly earnings results for the first quarter of 2021 on May 26, reporting earnings per share of -$0.23, beating market estimates by $0.15. The revenue over the period was close to $3.4 billion, up more than 260% year-on-year.

At the end of the first quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in Pinduoduo Inc. (NASDAQ: PDD), up from 54 in the preceding quarter worth $10.5 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.”

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Disclose. None. 20 Chinese Companies Listed on NYSE/NASDAQ/AMEX is originally published on Insider Monkey.