HHLR Advisors' Q2 Portfolio: 90% Chinese Stocks, Focus on Tech and Consumer Firms, Webull Investment.

HHLR Advisors, a fund management platform under Hillhouse Capital, has adjusted its portfolio with a focus on Chinese tech stocks. Over 90% of its portfolio in Q2 consisted of Chinese stocks, with significant investments in Pinduoduo, Futu Holdings, and Webull. The firm reduced its position in Alibaba and completely exited from companies like Trip.com, Baidu, and Yum China.

HHLR Advisors, a fund management platform under Hillhouse Capital, has significantly altered its investment strategy, shifting its portfolio to focus on Chinese tech stocks. According to recent filings, over 90% of the portfolio in Q2 2025 was allocated to Chinese stocks, with substantial investments in Pinduoduo, Futu Holdings, and Webull. The firm notably reduced its position in Alibaba and completely exited from companies like Trip.com, Baidu, and Yum China [1].

This strategic pivot follows a series of strong performances by Chinese tech stocks. For instance, Tencent (TCEHY) reported a 15% jump in quarterly revenue, driving the stock price higher and influencing other Chinese tech giants such as Alibaba (BABA), Baidu (BIDU), and JD.com (JD) [1]. Additionally, Futu Holdings Limited (NASDAQ: FUTU) reported an EPS of $1.96 for the last quarter, slightly beating estimates, with total revenue reaching $603.43 million compared to expectations of $594.86 million [2].

The shift in HHLR Advisors' portfolio indicates a strong belief in the potential of the Chinese tech sector. Futu Holdings, in particular, has seen significant institutional interest, with various hedge funds and institutional investors modifying their holdings in the company [2]. The company's digitalized securities brokerage and wealth management services, offered through its Futubull and Moomoo platforms, have contributed to its growth and attractiveness to investors.

However, this focus on Chinese tech stocks also comes with risks. The sector is known for its volatility and regulatory uncertainties. For example, reports of Chinese scrutiny on Nvidia (NVDA) chips have impacted the stock prices of these companies [1]. Additionally, the recent board changes at iQIYI, which appointed Baidu’s CFO as chairman, bring financial and management expertise but also highlight the need for consistent content creation and expanding monetization to address revenue and membership declines [3].

In conclusion, HHLR Advisors' decision to focus on Chinese tech stocks reflects a bullish outlook on the sector's growth potential. However, investors should remain vigilant to the risks associated with this sector, including regulatory uncertainties and the need for consistent content and monetization strategies.

References:
[1] https://finance.yahoo.com/video/tencent-pops-chinese-tech-stocks-162129076.html
[2] https://www.marketbeat.com/instant-alerts/filing-futu-holdings-limited-sponsored-adr-nasdaqfutu-shares-sold-by-central-asset-investments-management-holdings-hk-ltd-2025-08-12/
[3] https://simplywall.st/stocks/us/media/nasdaq-iq/iqiyi/news/baidu-leaders-take-charge-might-change-the-case-for-investin