Read Why This Swiss Firm Counts Alibaba Among Major Holdings


Lombard Odier Investment Managers sees the likes of Alibaba Group Holding Ltd BABATencent Holdings Ltd TCEHY, and Kuaishou Tech KSHTY KUASF among likely winners as growth in online advertising revenue remains firm despite China's economic slowdown, SCMP reports.

  • The Swiss firm's High Conviction funds in China and Asia count Alibaba and Tencent among their top 10 holdings.
  • A year-long regulatory crackdown on Chinese internet-platform operators has created opportunities for global investors to pick up stocks at the cheapest valuation in years.
  • China's mobile internet population will likely reach 1.1 billion by 2025, boosting the penetration rate to 78.5%.
  • The mobile advertising market could expand to 1.7 trillion yuan by 2025. The policy conditions in China are primarily priced in.
  • Technology stocks have become more resilient, offering investors a chance to be a part of China's long-term growth story at attractive valuations.
  • "In terms of regulatory risk, we are closer to the end rather than at the beginning," a manager said. "It's the backdrop of why we would be more positive on Chinese equities."
  • China's long-term policy architecture and market forces for enduring growth persist, even in the embattled tech sector, Lombard Odier said. This overarching policy direction will foster greater transparency and competition and modernize China's regulatory oversight in line with Western economy standards.
  • "Investors should stay focused on the big picture and not allow short-term volatility obscure long-term opportunities."
  • Price Action: BABA shares traded higher by 0.57% at $123.17 premarket on the last check Thursday.
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