JP Morgan Sees Buying Opportunities In Alibaba And Other Chinese Stocks Citing These Reasons - Alibaba Gr Holding (NYSE:BABA)

The 2021's deep selloff in Chinese stocks could finally be on the verge of a turnaround, Bloomberg quoted JP Morgan Chase & Co JPM strategist Marko Kolanovic.
Kolanovic expected the Chinese equities to have reached their turning point with ease in lockdowns, continued growth support measures, and possible relaxation in the regulatory crackdown.
Recently reports surfaced regarding China looking to end its yearlong regulatory probe on DiDi Global Inc DIDI and two other companies by this week.
Also Read: Alibaba, Other Chinese Stocks Pop As China's Top Economic Official Expresses Support For Digital Platform Ahead Of 2022 Election
Despite economists slashing the growth targets, any incremental improvement from the ease in lockdowns, regulations, and further stimulus should bode well for Chinese stocks in the coming quarters, Kolanovic added.
The Nasdaq Golden Dragon China Index surged on June 6, paring losses for the past year amid heightened regulatory scrutiny and China's stringent Covid Zero policy.
Recently, Kolanovic downplayed fears of a looming recession and projected the U.S. stock market to rebound during the second half of the year.
Kolanovic saw the past year's declines creating an opportunity for investors with possible additional government stimulus.
Kolanovic acknowledged that the recent economic data hinted toward an improved outlook after the dismal Q2 data.
JP Morgan recently upgraded multiple Chinese internet companies, including Alibaba Group Holding Ltd BABA, within months of calling them "uninvestable."
Price Action: BABA shares traded higher by 0.73% at $99.73 in the premarket on the last check Tuesday.
Photo by Rico Shen via Wikimedia

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