Chinese tech stocks: Shanghai IPOs are outperforming US shares

By James Dennin for Kapitall.

The big economic story of the year is the upcoming Alibaba IPO, which could turn out to be one of the largest tech IPOs of all time. 

But there's more to the story of Chinese tech than Jack Ma's widely anticipated international rollout. Chinese companies raised about $3 billion this quarter, the most since 2007. 

And they've outperformed our companies, too. US stocks gained an average of 21% following their 2014 IPOs, Chinese stocks opening on US exchanges gained 33%. 

That got us thinking about Chinese stocks, so we decided to run a screen. To do that we started with the universe of about 50 Chinese tech companies with shares trading on US exchanges.

We then screened for companies experiencing spikes in institutional purchasing—as 11 in our screen were. So we set the screen even higher, only including companies that have had at least 15% of their float purchased by institutional investors this quarter.

This indicates that the experts who run hedge funds and pension funds think the stock is a strong investment. Do you think they're right? Use the list below to begin your analysis and let us know what you think in the comments.  

Click on the interactive chart to view data over time. 

 

1. AutoNavi Holdings Limited ( AMAP, Earnings, Analysts, Financials): Provides digital map content and navigation and location-based solutions in the People's Republic of China (PRC). Market cap at $1.45B, most recent closing price at $20.87.  

Net institutional purchases in the current quarter at 11.3M shares, which represents about 38.9% of the company's float of 29.05M shares. 

Major investor: GLG Partners LP at a 3.84% stake. 

 

2. ChinaCache International Holdings Ltd. ( CCIH, Earnings, Analysts, Financials): Provides Internet content and application delivery services to businesses, government agencies, and other enterprises in the People's of Republic of China. Market cap at $372.03M, most recent closing price at $14.67.  

Net institutional purchases in the current quarter at 3.2M shares, which represents about 19.68% of the company's float of 16.26M shares. 

Major investor: Wellington Management Company at a 14.38% stake. 

 

3. Phoenix New Media Limited ( FENG, Earnings, Analysts, Financials): Provides content on an integrated platform across Internet, mobile, and TV channels in the People's Republic of China. Market cap at $806.47M, most recent closing price at $10.73.  

Net institutional purchases in the current quarter at 4.1M shares, which represents about 16.49% of the company's float of 24.87M shares. 

Major investor: Wellington Management Company at a 5.08% stake. 

 

4. Shanda Games Limited ( GAME, Earnings, Analysts, Financials): Engages in the development and operation of online games in the People's Republic of China. Market cap at $1.78B, most recent closing price at $6.64.  

Net institutional purchases in the current quarter at 9.3M shares, which represents about 17.19% of the company's float of 54.09M shares. 

Major investor: GLG Partners LP at a 1.23% stake.

 

5. JinkoSolar Holding Co., Ltd. ( JKS, Earnings, Analysts, Financials): Engages in the manufacture and sale of solar power products in China and internationally. Market cap at $914.49M, most recent closing price at $29.73.  

Net institutional purchases in the current quarter at 4.4M shares, which represents about 22.17% of the company's float of 19.85M shares.

Major investor: Andor Capital Management, L.L.C at a 3.24% stake.

 

6. Sky-mobi Limited ( MOBI, Earnings, Analysts, Financials): Engages in the operation of a mobile application store in the People's Republic of China. Market cap at $241M, most recent closing price at $7.98.  

Net institutional purchases in the current quarter at 2.6M shares, which represents about 15.67% of the company's float of 16.59M shares. 

Major investor: Bogle Investment Management LP at a 3.34% stake. 

 

7. NetQin Mobile Inc. ( NQ, Earnings, Analysts, Financials): Operates as a software-as-a-service provider of consumer-centric mobile Internet services focusing on security and productivity in the People's Republic of China and internationally. Market cap at $309.69M, most recent closing price at $6.07.  

Net institutional purchases in the current quarter at 3.3M shares, which represents about 17.57% of the company's float of 18.78M shares. 

Major investor: Altimeter Capital Management, LLC  at a 12.98%

 

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research, institutional data sourced from Fidelity. All other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

More from Stocks

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever