In the second quarter, seven of the top ten Hillhouse stocks are medium-sized stocks, and four of the five largest holdings are Chinese-listed stocks.
Among the heavy stocks, BeiGene, Ltd. and JD.com continued to rank in the top two. BABA and Pinduoduo built positions again in the second quarter, both buying more than 1 million shares. Ali Jiancang became the eighth largest stock, while Vipshop Holdings Limited, Legend Biotech Corp and KE Holdings Inc. were sixth, seventh and ninth respectively.
Although Li Auto Inc. cleared his stock, he was new to Tesla, Inc. and Daqo New Energy Corp, and Daquan was promoted to the top ten for the first time.
In the second quarter of this year, all three major indexes of US stocks fell sharply in double digits, falling for two consecutive quarters, of which the Nasdaq fell more than 20%, the worst quarterly performance since 2008, and the S & P and Dow fell more than 10%, the biggest quarterly decline since the first quarter of 2020. While Hillhouse Capital continued to be bullish on Chinese assets in the quarter, it not only further increased its holdings of some heavy US-listed stocks, but also bought two e-commerce giants, BABA and Pinduoduo.
On Monday 15th US Eastern time, HHLR Advisors, a fund manager under Hillhouse Capital, which specializes in secondary investment, released 13F documents submitted to the US Securities Regulatory Commission, showing that it continued to increase the centralized allocation of Chinese assets and heavy investment, and carried out increased holdings and new purchases of 9 US-listed stocks.
Seven of the top ten heavy stocks are listed in China, and four of the top five increase their holdings.
In the second quarter, the top 10 HHLR stocks are: BeiGene, Ltd. (BGNE), JD.com (JD), cloud software giant Sai FTSE (Salesforce.com Inc, code CRM), "American version of Meituan" DoorDash (DASH), "Southeast Asia Little Tencent" Sea Ltd (SE), Vipshop Holdings Limited (VIPS), Legend Biotech Corp (LEGN), BABA (BABA), KE Holdings Inc (BEKE), Daqo New Energy Corp (DQ), of which 7 are only China-listed.
Compared with the first quarter, the position rankings of BeiGene, Ltd. and JD.com remained unchanged in the second quarter. Sea rose from ninth to fifth, Vipshop Holdings Limited from one to sixth, and Saifu from fourth to third. BABA Jiancang, as a new entrant, ranked eighth. KE Holdings Inc and Daqo New Energy Corp were both new top 10 Chinese-listed stocks, while Legend Biotech Corp fell from fifth to seventh. On Holding (ONON), the parent company of Swiss sneaker brand On Onrun, which ranked sixth in the first quarter, and Mondelez International Inc International (MDLZ), which ranked 10th, failed to make the top 10.
On the whole, of all US stock positions held by HHLR in the second quarter, the total market value of Chinese stocks was nearly US $3 billion, accounting for 64% of the market capitalization. At the same time, HHLR carried out a total of 9 Chinese stocks in the second quarter, such as increased holdings and new purchases, which continues to show that the HHLR investment team is optimistic about Chinese assets. Among them, Vipshop Holdings Limited substantially increased his holdings by 147% in the first quarter of this year, and became one of the top ten heavy stocks for the first time in that quarter. KE Holdings Inc. entered the shareholding list in the first quarter because the common shares invested in the primary market were converted to the secondary market ADS.
Among the stocks with the largest increase in HHLR holdings in the second quarter, four of the top five were Chinese-listed stocks, namely BABA, Daqo New Energy Corp, KE Holdings Inc. and Pinduoduo, while the only non-Chinese-listed stock was the Sea supported by Tencent.
In addition, HHLR reduced its holdings of stocks such as iQIYI, Inc., On Holding and Full Truck Alliance Co. Ltd. in the second quarter. Among them, Vipshop Holdings Limited is the only new face in the top ten stocks in the first quarter. It is understood that these three companies are Hillhouse's investment in the primary market and belong to the normal reduction and exit of the fund.
A number of organizations "copy the bottom" BABA and Pinduoduo
HHLR sharply reduced its holdings of Pinduoduo shares by 92% in the fourth quarter of last year, and completely cleared its positions in the first quarter of this year, while in the second quarter, HHLR once again built positions in BABA and Pinduoduo, buying 1.89 million shares and 1.39 million shares respectively. BABA and Pinduoduo were the first and fifth stocks in HHLR to increase their holdings in the second quarter, respectively.
It is worth noting that BABA has also been favored by investment institutions such as Jinglin and Blackrock. The latest data show that Jinglin assets increased its holdings of BABA by 936000 shares in the second quarter. By the end of the second quarter, the number of shares held reached 1.243 million shares, with a market capitalization of $140 million, making it the sixth largest stock. Blackrock bought 57700 shares of BABA ADR in the second quarter, increasing the position by 1%. During the same period, Jing Lin also increased the position of Pinduoduo and bought 240000 shares.
In the second quarter, the share prices of BABA and Pinduoduo both showed a further downward trend. BABA's stock price in the second quarter was as low as 78 US dollars, which is 34% lower than that at the end of the fourth quarter of 2021. Pinduoduo's stock price in the second quarter was as low as 31 US dollars, 46% lower than the share price at the end of the fourth quarter of 2021. Market participants believe that investment institutions, including HHLR, bought BABA and Pinduoduo in the second quarter, perhaps in a low "bottom".
Technology and new energy are still important positions, clearance is ideal, but Daqo New Energy Corp has been promoted to the top ten stocks.
In the second quarter, science and technology and new energy are still the key investment directions of HHLR.
In the direction of technology investment, HHLR also bought Amazon.Com Inc, Microsoft Corp and other technology companies while continuing to hold heavy positions in SIFE, SEA, DoorDash and Coupang.
In the direction of new energy, although HHLR cleared Li Auto Inc. 's US stocks, which rose as much as 48% in the second quarter, it also bought Tesla, Inc. and JinkoSolar Holding Co Ltd Holdings, and increased its positions in Daqo New Energy Corp and Daqo New Energy Corp, which also entered the top 10 major stocks of HHLR, still continuing HHLR's long-term investment logic in new energy.
In the second quarter, HHLR bought 1.14 million shares of JinkoSolar Holding Co Ltd Holdings. According to public data, JinkoSolar Holding Co Ltd Holdings is a photovoltaic manufacturer with a vertically integrated industrial chain, covering the production of high-quality silicon ingots, wafers, battery wafers and efficient single polycrystalline photovoltaic modules.
Edit / emily