- JP Morgan Chase & Co (NYSE:JPM) upgraded multiple Chinese internet companies, including Alibaba Group Holding Limited (NYSE: BABA) and Tencent Holding Ltd (OTC: TCEHY), to Overweight, Bloomberg reports.
- JPM also upgraded shares of Meituan (OTC: MPNGY), NetEase, Inc (NASDAQ: NTES), and Pinduoduo Inc (NASDAQ: PDD).
- "Significant uncertainties facing the sector should begin to abate on the back of recent regulatory announcements," the firm added.
- Also Read: Alibaba And Other Chinese Stock Investors Remain Cautious Over China's Political Body Forum With Leading Firms
- The policy developments since their mid-March call have been supportive, diminishing risks related to regulation, delisting of American Depositary Receipts, and geopolitics.
- Investor caution regarding China's battered tech sector, with worries about persistent regulatory risks and Federal Reserve hikes adding pressure, drove the change in view.
- The provocative label helped erase some $200 billion from the U.S. and Asian markets and prompted one Chinese technology firm to downgrade JPMorgan's underwriting role on an initial public offering.
- JPM had caused a stir in the financial market by calling the sector "uninvestable" just two months back.
- Price Action: BABA shares traded lower by 0.98% at $87.13 in the premarket on the last check Monday.
