Market NewsBuy Ali and JD.com! JPMorgan Capital Management has increased its investment in Zhonggu Technology stocks.After singing long Chinese stocks in an all-round way, JPMorgan Chase funds increased their investments with practical actions, betting that attractive valuations will bring rich returns.
JPMorgan Asset Management is stepping up its investments in general technology stocks, betting that attractive valuations will yield handsome returns.
According to reports, Rebecca Jiang, which jointly manages three Chinese equity funds with total assets of nearly $20 billion, saidShe now has a more optimistic view of China's general technology stocks. JPMorgan's asset management flagship China fund has increased its holdings in Alibaba and JD.com this year, according to filings as of the end of May.
Rebecca Jiang said in an interview this week that the worst is over:
"the clearer and clearer regulatory framework around these Internet companies is certainly positive."
During the decline over the past year, JPMorgan did not significantly reduce its holdings of Chinese technology giants because the industry provided "key value" to clients, Rebecca Jiang said.
Her view echoes a growing trend in the Chinese market, where investors are starting to buy back into Chinese technology stocks. At the same time, at a time when major stock indexes around the world have entered a bear market, Chinese stocks have bucked the trend to attract buyers.
The Hang Seng Technology Index is up 12% in the past month.
When it was mentioned on Wall Street in the middle of last month that the team of JPMorgan analyst Alex Yao (Alex Yao) began to be bullish on Chinese stocks, it said in a research report that China's Internet industry is emerging from various rising uncertainties and will be driven by short-term and long-term fundamentals, so the company's share price may rise higher than expected.
Superimposed a number of Internet Chinese stocks rebounded and volatility fell, the team upgraded a number of stock ratings, including:
Upgrade JD.com Group ADR and H shares to neutral; Alibaba ADR to overmatch; Baidu ADR to neutral with a target price of US $125; bilibili H shares to neutral; Tencent to overmatch with a target price of HK $470; NetEase to overmatch with a target price of HK $185; and Meituan to overmatch with a target price of HK $220.
In addition to JPMorgan Chase's flagship China fund plus general technology stocks, Qiaoshui, the world's largest hedge fund, reported its position in the first quarter of 2022 to the Securities and Exchange Commission (SEC) on May 13.Qiaoshui continued to increase its holdings in Alibaba, pinduoduo, bilibili, Weilai, Baidu and other Chinese stocks in the first quarter of this year.
In addition, Morningstar data showDuring March this year, Fidelity International's China Consumer Power Fund significantly increased its holdings of Internet stocks such as Meituan and JD.com, while another Chinese stock fund also significantly increased its holdings in the Internet during March. Alibaba, Tencent and other targets.
Recently, strategists from Morgan Stanley to Jefferies have become increasingly bullish on China. Deutsche Bank said Wednesday it expects to raise its view on the Chinese stock market in the coming months.
The China fund managed by Rebecca Jiang reportedly lost 20 per cent last year and slipped down the rankings, while it ranked in the top 5 per cent of its peers in 2020. Although the fund is still down about 20 per cent so far this year, recent returns have begun to turn positive.
Jiang believes that:
"the growth strategy has gone through a difficult period, but for many Internet companies, stringent regulation and tightening can be said to be doomed. I think it helps investors to recognize and understand their true value. "
Looking ahead, Jiang said she was looking for opportunities in sectors such as real estate and policy beneficiaries such as infrastructure and new energy.
She expects that with continued monetary and financial support, China's stock market is expected to continue to outperform the world for the rest of the year, "both from a global asset allocation perspective and from a separate perspective. Chinese assets and stocks look very attractive.
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