International investors expected to further lower exposure to Chinese internet companies as risks linger – UBS
STOCKS VIEWS & ANALYSIS
International investors expected to further lower exposure to Chinese internet companies as risks linger – UBS
STOCKS VIEWS & ANALYSIS

International investors expected to further lower exposure to Chinese internet companies as risks linger – UBS

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

International investors foresaw higher odds of US policy’s impact on China’s Internet industry and they are expected to further lower China Internet exposure for companies listed in Hong Kong and the US, said UBS in a note.

Nevertheless, the broker expected some inflows to the Southbound eligible names from mainland investors. 

Risks linger in the China Internet sector and internet companies’ management teams were believed to take a cautious and conservative approach in the near term for their businesses and investor communications, and not to provide any long-term outlooks, it said.

UBS preferred ecommerce over other Internet segments, especially companies with lower valuation, such as Pinduoduo (PDD.US), Alibaba (09988.HK) and JD.com (09618.HK).

Beyond China and US policies, UBS believed that the impact of the US PCAOB’s accounting audit of Chinese ADRs will be positive if it can reach a successful conclusion, likely in November or December 2022. 

Besides, “Double 11” Shopping Festival data points may offer good news that online retail sales are holding up, it added.