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| HSCEI1 | 7,756.25 | +67.06 | 87.14B |
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2026-10-23 11:36:49 Citi issued a report stating that Chinese stocks have generally undergone a sharp correction recently, and market sentiment is believed to be approaching or already at capitulation levels, although the fundamentals of China's internet sector remain resilient. The bank noted that the correction may have been driven by macro headwinds, fund flows, concerns over the monetization cycle of artificial intelligence, the impact of wealth taxes, and potentially weak 3Q earnings. Compared with the Underperform seen at the end of Jun, capital expenditure commitments have increased significantly, triggering downward revisions to earnings forecasts for major Chinese internet stocks and worsening negative sentiment toward the sector. However, even after factoring in a further 10% to 30% cut in earnings forecasts, the bank believes valuations at current levels remain attractive. Supported by resilient core operating profit and healthy balance sheets, leading Chinese internet companies are expected to withstand short-term market volatility and capture long-term value during the evolution of the super-intelligence cycle. The bank reiterated its top picks including TENCENT (00700.HK), BABA-W (09988.HK), MEITUAN-W (03690.HK) (collectively referred to as ATM), PDD Holdings Inc. (PDD.US), and Full Truck Alliance Co. Ltd. (YMM.US). (ha/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |