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A private equity investment firm focused on the stock market has increased its holdings in major Chinese e-commerce companies, including Pinduoduo and Alibaba, during the third quarter. Conversely, it completely divested from JD.com.
The firm added 1.6 million shares of Pinduoduo over the three months ending September 30, bringing its total investment to 8.6 million shares valued at approximately $1.1 billion. This positions Pinduoduo as the firm’s largest holding, representing about 27.8% of its overall portfolio.
In addition, the firm increased its stake in Alibaba by 2.1 million shares, totaling 3.3 million, with a valuation near $588 million. Alibaba now makes up roughly 14.4% of the portfolio, cementing its spot as the second-largest investment.
The company also re-entered Baidu, purchasing 1.6 million shares valued at around $216.2 million. Baidu has now become the sixth-largest holding, comprising approximately 5.3% of the portfolio.
Supported by the wave of artificial intelligence advancements, Chinese tech stocks have generally been climbing this year. Pinduoduo’s share price rose 26% in the third quarter, Alibaba’s surged 58%, and Baidu’s increased by 54%.
At the same time, the firm reduced investments in eight companies, including JD.com, EV startup Li Auto, logistics provider ZTO Express, and the discount retailer Vipshop Holdings.
JD.com has been aggressively expanding its food delivery services this year, competing directly with industry leaders like Meituan and Alibaba-backed Ele.me, which has put pressure on its profitability. Despite a 15% revenue increase to CNY299.1 billion (about USD42 billion), JD’s net profit plummeted 55% year-over-year in the third quarter to CNY5.3 billion (USD746 million).
As of September 30, the firm’s portfolio included 33 stocks, featuring five new acquisitions, four positions increased, and four reduced. The total value of the investments rose by $1 billion from the previous quarter to $4.1 billion, with over 90% of assets invested in Chinese companies.
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