In Asia, there are the “BATs”: Baidu, Alibaba and Tencent. Another
overlapping group of stocks is the “HATTS”: Hon Hai, Alibaba, Tencent,
TSMC and Samsung Electronics. To ensure the chaos is complete, market
argot also combines these two groups by including Baidu to the HATTS.
But what of function? These Asian stocks have similarities with a number
of the FANG stocks, as well as being competitors and suppliers to the
group. The BHATTS represent a search engine, a mobile phone assembler,
an ecommerce platform, a chat/gaming platform, a semiconductor fab and
an integrated phone/consumer electronics/semiconductor manufacturer
Baidu and Alibaba can, in a simple fashion, be considered the
“Chinese” equivalents of Google and Amazon. Hon Hai, TSMC and
Samsung are all major suppliers to Apple. Samsung is also Apple’s largest
competitor. Overall, the group is more geared to mobile and less exposed
to media and advertising.
Furthermore, stocks such as Tencent and Alibaba
have signifcant exposure to fnancial services via WeChat Pay and Ant
Financial. Many of these stocks also have large portfolio investments in
other companies in the Asian hardware, internet, entertainment and fntech
spaces. The companies are self-evidently as different as they are similar.