{"id":5213,"date":"2023-11-24T11:22:38","date_gmt":"2023-11-24T03:22:38","guid":{"rendered":"https:\/\/www.yzzks.com\/?p=5213"},"modified":"2023-11-24T11:23:15","modified_gmt":"2023-11-24T03:23:15","slug":"%e6%88%90%e5%8a%9f%e6%8a%bc%e6%b3%a8%e4%b8%ad%e5%9b%bd%e6%b6%88%e8%b4%b9%e9%99%8d%e7%ba%a7%e5%92%8c%e4%b8%ad%e4%bc%81%e6%b5%b7%e5%a4%96%e6%89%a9%e5%bc%a0%e9%a2%98%e6%9d%90%ef%bc%8c%e5%af%b9%e5%86%b2","status":"publish","type":"post","link":"https:\/\/www.yzzks.com\/en\/latest-news\/5213\/","title":{"rendered":"Hedge Funds Profit from Successful Bets on China's Consumption Downgrade and Overseas Expansion of Chinese Companies"},"content":{"rendered":"
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Some Asian hedge funds have found ways to profit from China's struggling economy this year, doubling down on bets on companies that offer low-cost consumer goods or are expanding into overseas markets.<\/p>\n\n\n\n

China's low-priced e-commerce company Pinduoduo, the dollar store chain Mingchuan Yuping and Ruixing Coffee, which offers a drink for just $2, are among hedge funds' top holdings.<\/p>\n\n\n\n

Some hedge funds have benefited from bets related to consumer savings in the world's second-largest economy, fund industry sources say and exchange filings show.<\/p>\n\n\n\n

So far this year, shares of Pinduoduo and Ruixing Coffee have soared 46% and 45%, respectively, while shares of Mingchuang Yuping have more than doubled, contradicting the MSCI China Index's 10% decline.<\/p>\n\n\n\n

Hong Kong-based First Beijing Investment Ltd.'s flagship fund soared 30% in the first 10 months of the year, driven by bets on Pinduoduo and Ruixing Coffee positions, sources familiar with the firm's portfolio said.<\/p>\n\n\n\n

The company has bought more than 2 million shares of Poundland stock since the second quarter of 2023, making it its largest stake in a U.S.-listed company, according to its 13F quarterly filing with the Securities and Exchange Commission (SEC).<\/p>\n\n\n\n

Terran Capital, a $6 billion hedge fund, also lists Poundland as one of its top holdings, with all other major holdings being U.S. tech stocks.<\/p>\n\n\n\n

The fund cashed out some profits from its Poundland holdings in the last quarter, according to a 13F filing. The fund returned 12% through October, the source said.<\/p>\n\n\n\n

China's economic slowdown has led consumers to spend less, forcing domestic companies to seek growth overseas.<\/p>\n\n\n\n

Poundland has been a frontrunner in the competitive e-commerce market, with first-half net profit soaring 85%. analysts say the low-cost e-commerce giant has become a representative of the value-for-money consumer trend.<\/p>\n\n\n\n

The company entered the U.S. market last year through its Temu brand and is rapidly expanding into other countries, attracting investors keen on the themes of globalization and diversification.<\/p>\n\n\n\n

Similarly, Famous has accelerated the pace of store openings outside of China while realizing strong profitability. In May, the company opened its first global flagship store in New York.<\/p>\n\n\n\n

Andy Maynard, head of equities at China Renaissance, said Chinese companies with strong supply chain management and value-added products have been popular for overseas expansion this year as consumers downsize.<\/p>\n\n\n\n

Pinduoduo, in particular, has grabbed market share both domestically and globally, making it \"a Chinese company with a degree of defense,\" Maynard said.<\/p>\n\n\n\n

The flagship fund of Hong Kong-based hedge fund firm WT Asset Management rose 5% in October, sources said.13F filings showed the fund increased its stake in Poundland and added to its holdings of Famous for the third quarter.<\/p>\n\n\n\n

Neither First Beijing, Terran Capital nor WT responded to requests for comment.<\/p>\n\n\n\n

The average Greater China long-short equity fund is down 101 TP3T so far this year, while Asia long-short equity funds are down 41 TP3T, according to data provider EurekaHedge.<\/p>","protected":false},"excerpt":{"rendered":"

Some Asian hedge funds have found ways to profit from the struggling Chinese economy this year [...]<\/span><\/p>","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-5213","post","type-post","status-publish","format-standard","hentry","category-latest-news"],"_links":{"self":[{"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/posts\/5213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/comments?post=5213"}],"version-history":[{"count":2,"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/posts\/5213\/revisions"}],"predecessor-version":[{"id":5218,"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/posts\/5213\/revisions\/5218"}],"wp:attachment":[{"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/media?parent=5213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/categories?post=5213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yzzks.com\/en\/wp-json\/wp\/v2\/tags?post=5213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}