At the start of the fourth quarter, a quarter of U.S. hedge funds held a long position in at least one China ADR (American depositary receipt).

This is the highest share of U.S. hedge funds with long positions in China ADRs since late 2021.

Among the ADRs, JD.com (JD) ranked the highest in net increase of U.S. hedge fund owners, according to Goldman Sachs’s Hedge Fund Trend Monitor.

Among the ETFs, hedge fund ownership of KraneShare CSI China Internet ETF (KWEB) and iShares China Large-Cap ETF (NYSEARCA:FXI) increased last quarter, with $1.3 and $1.4 change in short interest from June 2024, respectively.

The following are China ADRs with a market cap larger than $1B and the largest net number of hedge funds increasing ownership during the third quarter.

• JD.com, Inc. (JD) – Percent of cap owned by U.S. hedge funds: 5%; Number of U.S. hedge fund added minus the ones who cut ownership: 26
• GDS Holdings Ltd. (GDS) – Percent of cap owned by U.S. hedge funds: 15%; Number of U.S. hedge fund added minus the ones who cut ownership: 18
• Atour Lifestyle Holdings Ltd. (ATAT) – Percent of cap owned by U.S. hedge funds: 4%; Number of U.S. hedge fund added minus the ones who cut ownership: 12
• NIO Inc. (NIO) – Percent of cap owned by U.S. hedge funds: 2%; Number of U.S. hedge fund added minus the ones who cut ownership: 11
• PDD Holdings Inc. (PDD) – Percent of cap owned by U.S. hedge funds: 2%; Number of U.S. hedge fund added minus the ones who cut ownership: 10
• BeiGene Ltd (BGNE) – Percent of cap owned by U.S. hedge funds: 12%; Number of U.S. hedge fund added minus the ones who cut ownership: 8
• Li Auto, Inc. (LI) – Percent of cap owned by U.S. hedge funds: 2%; Number of U.S. hedge fund added minus the ones who cut ownership: 7
• H World Group Limited (HTHT) – Percent of cap owned by U.S. hedge funds: 2%; Number of U.S. hedge fund added minus the ones who cut ownership: 7
• RLX Technology, Inc. (RLX) – Percent of cap owned by U.S. hedge funds: 3%; Number of U.S. hedge fund added minus the ones who cut ownership: 7
• Trip.com Group Ltd. (TCOM) – Percent of cap owned by U.S. hedge funds: 2%; Number of U.S. hedge fund added minus the ones who cut ownership: 6
• Qifu Technology. Inc (QFIN) – Percent of cap owned by U.S. hedge funds: 5%; Number of U.S. hedge fund added minus the ones who cut ownership: 6
• ZTO Express (Cayman), Inc. (ZTO) – Percent of cap owned by U.S. hedge funds: 1%; Number of U.S. hedge fund added minus the ones who cut ownership: 6
• Zai Lab Ltd. (ZLAB) – Percent of cap owned by U.S. hedge funds: 7%; Number of U.S. hedge fund added minus the ones who cut ownership:
• Alibaba Group Holding Limited (BABA) – Percent of cap owned by U.S. hedge funds: 2%; Number of U.S. hedge fund added minus the ones who cut ownership: 5
• Tencent Music Entertainment Group (TME) – Percent of cap owned by U.S. hedge funds: 2%; Number of U.S. hedge fund added minus the ones who cut ownership: 3