China's Top Private Equity Firms Reveal "U.S. Stock Market Report Card": Aggressively Increasing Holdings in China Concept Stocks, Optimistic About China's Prospects

As US equity institutional investors' Q1 holdings data (13F) reports are gradually disclosed, the overseas investment moves of Chinese private equity firms such as Hillhouse Capital, Gaoyi Asset Management, and Greenwoods Asset Management have come to light.

Overall, in Q1 this year, Hillhouse Capital, Gaoyi Asset Management, and Greenwoods Asset Management all increased their investments in US-listed Chinese companies, indicating an optimistic attitude among these Chinese private equity giants towards the prospects of Chinese assets amid the market trend of "China rising while the West declines" at the beginning of this year.

Hillhouse HHLR Advisors: US-listed Chinese Companies Dominate Holdings

Overall, in Q1, the total market value of HHLR Advisors' holdings increased from $2.887 billion at the end of last quarter to $3.539 billion, a nearly 23% increase, while continuing to increase its allocation to Chinese assets.

According to the disclosed 13F filing, HHLR Advisors newly entered or increased its stakes in nearly 20 US-listed Chinese companies in Q1, including 10 companies newly purchased such as Atour Lifestyle Holdings, Huazhu Group, Baidu, Yuchai International, Li Auto, BOSS Zhipin, ECARX Technology, as well as 8 companies with increased stakes such as Futu Holdings, Pinduoduo, NetEase, KE Holdings, JD.com, Trip.com Group, and ZTO Express.

In Q1 this year, the trend of HHLR Advisors continuing to heavily invest in US-listed Chinese companies was evident.

Among HHLR Advisors' top 10 largest holdings in Q1, US-listed Chinese companies accounted for nine positions, namely Pinduoduo, Alibaba, Futu Holdings, BeiGene, NetEase, KE Holdings, Legend Biotech, JD.com, Vipshop, and WNS HLDGS LTD.

Meanwhile, HHLR Advisors reduced its stakes in companies such as Alibaba and BeiGene in Q1. In terms of stock price performance, Alibaba's stock price rose by 56% in Q1, while BeiGene's also increased by 47%. Hillhouse Capital's investment in BeiGene dates back to 2014, spanning over 10 years. The reduction in Q1 may be due to the fund's maturity and exit to timely lock in gains.

Gaoyi Asset Management: Substantially Increased Holdings in US-listed Chinese Companies

In Q1 this year, the total market value of Gaoyi Asset Management's holdings increased from $740 million at the end of last quarter to $770 million, while continuing to increase its allocation to Chinese assets.

According to the disclosed 13F filing, Gaoyi Asset Management newly entered or increased its stakes in 6 US-listed Chinese companies in Q1, namely Huazhu Group, BOSS Zhipin, Trip.com Group, Taiwan Semiconductor Manufacturing Company, iQIYI, and New Oriental Education & Technology Group. Among them, Gaoyi Asset Management substantially increased its stake in 1.31 million shares of Huazhu Group, making it the largest holding.

Gaoyi Asset Management also substantially increased its stake in 1.59 million shares of BOSS Zhipin, with an increase of 173.58%, propelling it to the fifth-largest holding.

In terms of reductions, Gaoyi Asset Management substantially reduced its stake in META by 80% in Q1, also reduced its stake in Google by half, and liquidated its position in Atour Lifestyle Holdings.

Additionally, Gaoyi reduced its holdings in Pinduoduo by 132,000 shares, Beike by 648,000 shares, and Yum China by 434,000 shares. However, even after these reductions, these three stocks remained its primary holdings, second only to Huazhu.

Greenwoods: Clearly Optimistic About the Prospects of Chinese Assets

In Q1 this year, Chinese concept stocks were also a key focus for Greenwoods.

According to the 13F report, among Greenwoods' increased holdings, Futu, Beike, and Alibaba ranked as the top three, with Greenwoods increasing its holdings in Futu by 618,000 shares, a 48.23% increase, elevating it to the sixth-largest holding. However, Greenwoods also reduced its holdings in NetEase by 57,700 shares.

Overall, in Q1, Greenwoods' total portfolio value increased from $3.17 billion at the end of the previous quarter to $3.23 billion, with 14 stocks being increased or newly acquired, and 21 stocks being reduced or cleared. The concentration of the top ten holdings reached 86.24%.

At the end of Q1, Greenwoods' top five holdings were Meta, Pinduoduo, NetEase, Manbang, and TSMC. Among its top ten holdings, eight were Chinese concept stocks.

Notably, in March this year, Gao Yuncheng, a partner and fund manager at Greenwoods Asset Management, was interviewed by reporters. He stated at the time that he was clearly optimistic about China's development prospects in the coming years.

In his view, with changes in global geopolitics and industrial structure, the competitive strength of Chinese companies is undergoing a transformation from being significantly undervalued, to gradually being re-recognized, and then to potentially attracting global capital reinvestment.

Himalaya Capital: Synchronized with Buffett in Reducing Holdings of Bank of America

Li Lu's Himalaya Capital also released its 13F report.

According to the report, in Q1 this year, Li Lu, known as the "Chinese Buffett," synchronized his investment operations with Buffett himself: Li Lu chose to significantly reduce his holdings in Bank of America by 4.23 million shares, a reduction of 23.42%.

In the latest Berkshire 13F report, Bank of America was also the only stock among Berkshire's top ten holdings to be reduced. This suggests that both Li Lu and Buffett may hold a more cautious view on Bank of America stocks.

In addition to Bank of America, Li Lu also reduced his holdings in Google by 592,000 shares and Apple by 207,000 shares, with reductions of 19.47% and 65.19%, respectively.

Apart from reducing holdings in these three stocks, Li Lu made no further portfolio adjustments in Q1. By the end of Q1, the market value of Li Lu's open interest had decreased from US$2.71 billion in the previous quarter to US$2.21 billion. His top three holdings were Bank of America, Berkshire Hathaway, and Google, respectively.