FirstFT: Chinese tech stocks improve as economic activity slumps


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JPMorgan Chase research analysts endorsed a handful of Chinese internet stocks deemed “uninvestable” just two months ago in a significant shift in sentiment toward the sector.

In a series of rating changes Monday, technology analyst Alex Yao and his team raised seven companies to “overweight” after giving them “underweight” ratings in March. JPMorgan also moved several other Chinese stocks from “underweight” to “neutral”.

An “overweight” classification generally means that an analyst recommends that clients hold more of the stock than the relevant benchmark, rather than less. The labels are similar to a change from “sell” to “buy”.

Ratings from NetEase, Tencent, Alibaba, Meituan, iQIYI, Dingdong and Pinduoduo were all updated on Monday as the companies begin to recover from a strong selloff earlier this year. NetEase fell more than 30% for the year to March 15, but has since recovered and reduced its year-to-date loss to around 10%.

As tech company stocks improve, China’s economic activity has fallen amid Covid lockdowns. Retail sales fell 11.1% year-on-year, against a forecast of a 6.6% drop by economists polled by Bloomberg. Industrial production fell 2.9%.

Shares on Wall Street fell in choppy trade on Monday as weak economic data out of China put further pressure on the global economic outlook.

Do you have any comments on today’s newsletter? Email me at [email protected] Thanks for reading FirstFT Asia — Emily

1. Putin signals acceptance of Finland and Sweden’s NATO membership Vladimir Putin signaled that Russia would tolerate Finland and Sweden joining NATO, but warned that the Kremlin would react if the alliance set up military bases or equipment in either country . Turkish President Recep Tayyip Erdoğan, however, opposed the candidacies of the two nations, accusing the countries of supporting Kurdish militants.

2. Buffalo shooting suspect planned new attacks, police say The teenager suspected of mass shooting in Buffalo, New York, over the weekend planned to continue his ‘rampant’ if he hadn’t been arrested, the police commissioner said on Monday. from the city. “He intended to keep driving down Jefferson Avenue to shoot more black people,” Buffalo Police Commissioner Joseph Gramaglia told ABC News.

3. India’s wheat export ban shakes markets Wheat prices rose by the maximum amount allowed on Monday after India imposed an export ban, fueling pressure on food prices as tight global supplies disrupted international markets. Chicago-traded futures rose 5.9% to $12.47 a bushel, their highest level in two months.

4. Nomura prepares to launch a crypto subsidiary Japan’s largest investment bank to launch a new company to help institutional clients diversify into cryptocurrency, decentralized finance and non-fungible tokens, despite a recent bout of volatility in the crypto market that has raised fundamental questions about its security for investors.

5. Beijing’s Harrow School loses its hallowed British brand image A Beijing school affiliated with the 450-year-old English public school Harrow has been forced to drop its famous brand name as part of a sweeping tightening of controls on education providers in China. Harrow Beijing told parents that the bilingual school will in future be known as Lide.

The day ahead

JD.com Earnings The Chinese e-commerce group will publish its first quarter results. Last month, its founder Richard Liu stepped down, marking the latest exit from one of the country’s top entrepreneurs.

Sweden welcomes Finnish President Finnish President Sauli Niinistö pays state visit to Stockholm as both countries prepare to join NATO

Speech by the Chairman of the Supervisory Board of the ECB Andrea Enria, Chairman of the Supervisory Board of the European Central Bank, delivers a keynote speech at the Institut Montaigne in Paris.

Fixed: In Friday’s quiz, one of the questions did not match the answer. We apologize for an error.

What else we read

Cardinal Zen will not fear the fate that awaits him in Hong Kong When the FT’s Tom Mitchell hosted a lecture by Roman Catholic cleric Cardinal Joseph Zen at the Hong Kong Foreign Correspondents’ Club in June 2009, it never occurred to him that it would one day become an act legally perilous.

The food insecurity crisis is a bigger problem than energy Governments are spending a lot of time and resources trying to mitigate soaring energy costs following Russia’s invasion of Ukraine, writes Meghan Greene. But the war has sown the seeds of an even bigger crisis that doesn’t get as much attention: global food shortages.

A food market in Colombo, Sri Lanka. Food insecurity is a source of social unrest and geopolitical risks, with rising prices sparking protests in Sri Lanka © Ishara S Kodikara/AFP/Getty Images

The new ESG realpolitik and the bonanza of fossil fuels The world is not ready for an immediate switch to green energy, writes Patrick Jenkins. Pushing companies out of fossil fuels into renewables is the next step, but a less attractive one. Being upfront about this is as important to ESG’s reputation as it is to the future of the planet. register here for our ESG and sustainable finance newsletter, Moral Money.

Is Elon Musk too big to regulate? Many on Wall Street saw Elon Musk’s tweet on Friday announcing that he was putting his purchase of Twitter on “temporary hold” in order to soften Twitter’s management to negotiate a lower offer. But legal experts said it was another example of Tesla’s chief executive flouting securities regulations, leaving him open to the SEC’s nuclear option.

Crimea could be Putin’s tipping point in a nuclear chicken game The United States believes Vladimir Putin would only authorize the use of nuclear weapons if he perceived an existential threat to Russia. But what could be considered such a threat, asks Malcolm Chalmers of the Royal United Services Institute.

Travel

One of the oldest, most enduring, checkerboard and romantic roads in the world, the King’s Highway in Jordan is as legendary and evocative as the Silk Road. Follow with a journey down the country’s spine, following in the footsteps of Jean-Baptiste and TE Lawrence.

© Alamy

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