Some of Asia’s largest hedge funds cut their holdings in JD.com in the third quarter of the year in favour of investing in rival e-commerce giant Pinduoduo, according to a report by Reuters.

The report cites the funds' latest regulatory filings as revealing the switch which seems to be based on a preference for Pinduoduo's global ambition and inexpensive products over JD.com's purely domestic business.

HHLR Advisers, an investment management arm under billionaire Zhang Lei’s private equity firm Hillhouse Capital Group, upped its Pinduoduo holding by 43% jump in the past quarter, while it sold 25% of its JD.com US-listed American depositary receipts (ADRs).

Hong Kong-based Greenwoods Asset Management also acquired as many as 1.2 million Pinduodup shares in Pinduoduo, while selling 1.1 million JD.com shares.