China Internet Regulation Poses New Risks for PDD Holdings (PDD)

PDD Holdings Inc. (NASDAQ:PDD) ranks among the best high growth Chinese stocks to buy. Morgan Stanley reaffirmed an Overweight rating on PDD Holdings Inc. (NASDAQ:PDD) on January 15, with a $148 price target, though it removed the company from its Top Pick list due to growing regulatory worries and market uncertainty for the Chinese internet sector.

The firm pointed to the General Office of Anti-Monopoly and Anti-Unfair Competition Commission’s recent probe into food delivery platforms, as well as SAMR’s anti-monopoly inquiry into TCOM, as signs of increased regulatory risks for China’s internet industry.

Morgan Stanley also noted that China’s delayed consumer recovery may pose additional hurdles for e-commerce services, like PDD Holdings Inc. (NASDAQ:PDD), in 2026.

Meanwhile, Freedom Capital Markets increased its price target for PDD Holdings Inc. (NASDAQ:PDD) to $170 from $140 on January 6, while keeping a Buy rating on the company. The firm stated that it had demonstrated resilience by responding to US tariffs and eliminating the de minimis duty-free level for imports from China.

PDD Holdings Inc. (NASDAQ:PDD) is a global commerce company that operates several businesses, including two key ventures: Pinduoduo and Temu. Pinduoduo is an e-commerce platform with a wide range of products, whereas Temu is an online marketplace that specializes in heavily discounted consumer goods.

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Disclosure: None. This article is originally published at Insider Monkey.