Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you like to follow smart money buying trends? These investors include hedge fund managers and mutual fund managers, and because of their experience and access to sophisticated research, many follow which stocks the smart money is buying.

With this idea in mind, we ran a screen on US-traded stocks of companies based in China for those being favored by institutional investors. We began by screening for Chinese companies with high-growth projections, with 5-year projected EPS growth above 15%.

We then screened these names for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will reach their high growth projections? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. Spreadtrum Communications Inc. (NASDAQ:SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $616.44M, most recent closing price at $15.81. 5-year projected EPS growth at 17.37%. Net institutional purchases in the current quarter at 9.8M shares, which represents about 32.67% of the company's float of 30.00M shares.

2. Home Inns & Hotels Management Inc. (NASDAQ:HMIN): Develops, leases, operates, franchises, and manages a chain of economy hotels in the People's Republic of China. Market cap at $1.06B, most recent closing price at $22.50. 5-year projected EPS growth at 18.22%. Net institutional purchases in the current quarter at 3.7M shares, which represents about 17.66% of the company's float of 20.95M shares.

3. 21Vianet Group, Inc. (NASDAQ:VNET): Provides carrier-neutral Internet data center services in China. Market cap at $721.63M, most recent closing price at $12.82. 5-year projected EPS growth at 31.50%. Net institutional purchases in the current quarter at 4.2M shares, which represents about 13.54% of the company's float of 31.01M shares.

4. China Biologic Products, Inc. (NASDAQ:CBPO): Engages in the research, development, manufacturing, and sale of plasma-based pharmaceutical products. Market cap at $221.44M, most recent closing price at $8.30. 5-year projected EPS growth at 30.00%. Net institutional purchases in the current quarter at 708.2K shares, which represents about 10.12% of the company's float of 7.00M shares.

5. AirMedia Group Inc. (NASDAQ:AMCN): Operates digital media network in China for air travel advertising. Market cap at $186.04M, most recent closing price at $2.82. 5-year projected EPS growth at 20.00%. Net institutional purchases in the current quarter at 2.0M shares, which represents about 5.67% of the company's float of 35.25M shares.

6. 51job Inc. (NASDAQ:JOBS): Provides integrated human resource services primarily in the People's Republic of China. Market cap at $1.67B, most recent closing price at $58.27. 5-year projected EPS growth at 22.97%. Net institutional purchases in the current quarter at 514.3K shares, which represents about 5.57% of the company's float of 9.23M shares.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 6 High-Growth Chinese Stocks Being Bought Up By Hedge Funds