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Tiger Global Just Sold Off Its Xpeng (XPEV) Stock

Investor Place · 11/15/2022 15:07

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

For most U.S.-listed Chinese stocks, it’s been a terrible year. A series of headwinds have led to massive declines for companies across the board. For investors in high-growth EV maker XPeng (NYSE:XPEV), this has also been the case. Shares of XPEV stock are still down more than 80%.

That said, a significant upside rally over the past week has seen most Chinese stocks take off. There are a number of reasons for this rally, including improving U.S.-China relations, the potential curbing of zero-Covid policies, and moves by the government to stem what could be a property crisis in China.

That said, it’s interesting to see big money continue to move out of Chinese stocks. During this recent round of 13-F filingsTiger Global has been the latest company to exit positions in Chinese companies. Among the most significant sales was the firm’s XPeng holdings, which were completely taken off the books.

Let’s dive into what investors should make of this news.

Is Now the Time to Buy XPEV Stock?

This near-term rally is certainly exciting for investors with any exposure to Chinese equities. Given the extremely rough ride investors have been on for more than a year, any sort of reprieve is welcome.

That said, Tiger Global is one of many “smart money” managers who think otherwise. Geopolitical risks are real, and while the macro environment finally appears to be turning the corner in China, there are plenty of other risks that could pop up.

It’s also worth noting that this 13-F filing relates to moves made this past quarter. Companies have up to 45 days after the end of the quarter to report their updated holdings. Accordingly, many firms decide to wait until the last minute to show their work.

So, who knows? Perhaps Tiger Global sold before the bottom and bought back in. We won’t know for another three months.

Until then, Chinese stocks such as XPeng prove to be volatile movers that stock traders will be watching closely. For now, this is a stock that’s on my watchlist. However, the risks remain high with any company tied to China right now.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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