China is expected to be the fastest growing economy this year and is projected to become the world’s largest economy by 2028. Owing to its phenomenal growth potential, renowned investor Cathie Wood has invested in two of the country’s biggest tech companies—Tencent Holdings (OTC:TCEHY) and Baidu (NASDAQ:BIDU). But let’s find out which of these stocks is a better buy now?.Many economists believe China will overtake the United States as the world’s largest economy by 2028 given its current growth rate. The country is a global manufacturing hub with an affinity for technological innovations and development. Investor and founder of the world’s largest actively managed ETF company Ark Investment, Cathie Wood, has been betting on the Asian giant’s growth prospects for some time.
Large-cap Chinese companies Tencent Holdings, Limited (TCEHY) and Baidu, Inc. (BIDU) represent two of Wood’s biggest bets in China. She owns 6.82 million shares of TCEHY and 4.32 million shares of BIDU. Her TCEHY holdings have a combined 1.11% weighting in Ark, while BIDU stock has a 2.05% combined weighting.
Both the stocks have gained significantly over the past year. While BIDU gained 113.4% over this period, TCEHY returned 57%. In terms of past six-month performance, BIDU is the clear winner with 52.8% gains versus TCEHY’s 6.9% returns. However, shares of BIDU have declined 5.2% year-to-date, while TCEHY has gained 11.5%.