JP Morgan Sees Buying Opportunities In Alibaba And Other Chinese Stocks Citing These Reasons

Loading...
Loading...
  • 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 BABAwithin 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
Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: NewsPenny StocksAnalyst RatingsTechMediaBriefs

Loading...