Private Equity Giant Hillhouse Gobbles Up Shares in NEV-Makers, Ditches Alibaba, Bilibili

While HHLR Advisors slashed its holdings of some U.S.-listed Chinese tech companies, the steep declines in the value of their stocks last year led other big investment managers to scoop them up as they hunted for bargains.

A unit of Beijing-based investment firm Hillhouse increased its exposure to two U.S.-listed Chinese new-energy vehicle (NEV) makers in the fourth quarter of 2021 while offloading shares in internet giants Alibaba Group Holding Ltd. and Bilibili Inc.

The adjustments to its investments, revealed in a filing to the U.S. Securities and Exchange Commission (SEC) Monday, likely reflect investor concerns about the Chinese tech sector’s prospects after last year’s domestic regulatory onslaught and expectations that China’s surging NEV market will offer better returns. Hillhouse, which is run by billionaire Zhang Lei, said it was unable to comment on changes to the portfolio which is managed by HHLR Advisors Ltd., the group’s fund manager focused on secondary market investments.