JPMorgan Chase research analysts approved a number of Chinese online promotions only two months ago it was declared “unfit for investment” due to a significant shift in sentiment towards the sector.
In a series of changes to the rating on Monday, technology analyst Alex Yao and his team upgraded seven companies to the category of “overweight”, assigning them ratings of “underweight” in March. JPMorgan also raised several other Chinese stocks from “insufficient” to “neutral”.
The classification of “overweight” usually means that the analyst recommends that its clients hold more stocks than the corresponding benchmark, not less. Labels are like changing from “sell” to “buy”.
Ratings of NetEase, Tencent, Alibaba, Meituan, iQIYI, Dingdong and Pinduoduo were raised on Monday as companies begin to recover after a sharp sell-off earlier this year. NetEase fell more than 30 percent for the year to March 15, but has since recovered and reduced its loss since the beginning of the year to about 10 percent.
While the shares of technology companies are improving, China’s economic activity has fallen sharply amid Covid’s blockades. Retail sales decreased by 11.1 percent over the same period last year, compared to the forecasts of economists polled by Bloomberg, a decline of 6.6 percent. Industrial production fell 2.9 percent.
Wall Street stocks fell into a tumultuous trade on Monday as weak economic data from China put additional pressure on the outlook for the global economy.
Do you have feedback on today’s newsletter? Email me email@example.com. Thanks for reading FirstFT Asia – Emily
Five more stories in the news
1. Putin signals the recognition of the accession of Finland and Sweden to NATO Vladimir Putin signaled Russia will suffer Finland and Sweden join NATO, but have warned that the Kremlin will respond if the alliance deploys military bases or equipment in any of the countries. However, Turkish President Recep Tayyip Erdogan did so objected at the request of the two countries, accusing the countries of supporting Kurdish militants.
2. Police say the suspect in the buffalo shooting planned the next attacks A teenager suspected of racial executions in Buffalo, New York, was planning this weekend continue his “riot” If he had not been stopped, the city police commissioner said on Monday. “He had plans to continue driving down Jefferson Avenue to shoot more black people,” said Joseph Gramaglia, Buffalo Police Commissioner, ABC News.
3. Ban on wheat exports from India shakes markets Wheat prices has grown to the maximum allowable value on Monday after India imposed an export ban, stepping up pressure on food prices as tight global supplies shook international markets. Futures traded in Chicago rose 5.9 percent to $ 12.47 a bushel, the highest in two months.
4. Nomura is preparing to launch a crypto-subsidiary Japan’s largest investment bank is set to launch a new company to help institutional clients diversify into cryptocurrencydecentralized finance and indispensable tokens, despite recent volatility in the crypto market, which has raised fundamental questions about its security for investors.
5. Harrow Beijing School is losing its dedicated British brand The Beijing School, affiliated with Harrow’s 450-year-old English public school, was forced to abandon its famous brand as part of a broader tightening of control over education providers in China. Harrow Beijing informed parents that the bilingual school in the future will be called Lide.
Ahead is the day
Earnings JD.com The Chinese e-commerce group reported earnings for the first quarter. Last month its founder Richard Liu resignedwhich means the latest exit for one of the country’s leading entrepreneurs.
Sweden receives President of Finland President of Finland Sauli Niiniste makes a state visit to Stockholm as the two countries prepare for NATO membership
Speech by the Chairman of the ECB Supervisory Board Andrea Enri, Chairman of the Supervisory Board of the European Central Bank, delivers a keynote speech at the Instituto Montaigne in Paris.
Correction: In Friday’s quiz, one of the questions did not match the answer. We apologize for the mistake.
What else are we reading
Cardinal Zen will not be afraid of the fate that awaits him in Hong Kong When Tom Mitchell of the FT hosted a speech by Cardinal Joseph Zen, a Roman Catholic priest at the Hong Kong Foreign Correspondents Club, in June 2009, it never occurred to him that it would be one day become a legally dangerous act.
The food security crisis is a bigger problem than energy Governments are spending a lot of time and resources to mitigate rising energy costs after Russia’s invasion of Ukraine, writes Megan Green. But the war sowed the seeds of an even greater crisis this is not given almost as much attention: global food shortages.
New real ESG policy and fossil fuels The world is not ready for this immediate transition to green energy, writes Patrick Jenkins. The next step is to move businesses from fossil fuels to renewables, but less clearly attractive. Honestly, this is important both for the reputation of the ESG and for the future of the planet. Register here for our newsletter ESG and Sustainable Funding, Moral Money.
Is Elon Musk too big to handle? Many on Wall Street saw Elon Musk’s tweet on Friday, announcing that he was “temporarily suspending the purchase of Twitter” as a way to soften Twitter’s leadership to negotiate a lower offer. But legal experts say this is another example of how Tesla’s head violates securities regulations, leaving it open to the nuclear version of the SEC.
Crimea could be Putin’s turning point in the game of nuclear chicken The United States believes that Vladimir Putin would allow the use of nuclear weapons only if he was aware of the existential threat to Russia. But what could be qualified as such a threat, Malcolm Chalmers asks from the Royal United Services Institute.
One of the oldest, most persistent, most winding, most romantic roads in the world, Royal Highway in Jordan, as legendary and memorable as the Silk Road. Continue along the journey along the ridge of the country, in the footsteps of John the Baptist and I.E. Lawrence.