UBS Maintains Preference for Major Chinese Internet Stocks in H-shares, Includes JD and BIDU in Model Portfolio
China's Market Resilience: The MSCI China Index has outperformed global indices by approximately 1.4% since the Iran conflict began, with the CSI 300 Index showing notable stability, indicating that the Chinese equity market provides good diversification for global investors.
Geopolitical Impact on China: Recent geopolitical events have had limited negative effects on the Chinese market due to low oil dependency, substantial oil reserves, and government pricing mechanisms that mitigate the impact of rising oil prices.
Investment Preferences: UBS favors sectors such as hardware tech, non-ferrous metals, internet, electrical equipment, and brokers within A-shares, while continuing to support large internet companies in H-shares, including JD-SW and BIDU-SW, due to their attractive valuations and shareholder return strategies.
Market Activity: Short selling activity has been significant for BIDU-SW and JD-SW, with notable ratios indicating investor sentiment and market dynamics surrounding these stocks.
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<Research>UBS Reveals Top Choices for Chinese Investors (Table)
UBS Report Findings: UBS identified JD-SW and BIDU-SW as preferred stocks for Chinese investors, both rated as Buy, while Alibaba was removed from the list.
Stock Performance: JD-SW saw a gain of +0.900 (+0.829%) with significant short selling, while BIDU-SW experienced a decline of -1.400 (-1.149%).
Short Selling Data: Notable short selling figures include Tencent at $1.77B and JD-SW at $277.62M, indicating high investor caution.
Market Overview: The report includes various stocks with their respective performance and target prices, highlighting a mix of gains and losses across different companies.
UBS Maintains Preference for Major Chinese Internet Stocks in H-shares, Includes JD and BIDU in Model Portfolio
China's Market Resilience: The MSCI China Index has outperformed global indices by approximately 1.4% since the Iran conflict began, with the CSI 300 Index showing notable stability, indicating that the Chinese equity market provides good diversification for global investors.
Geopolitical Impact on China: Recent geopolitical events have had limited negative effects on the Chinese market due to low oil dependency, substantial oil reserves, and government pricing mechanisms that mitigate the impact of rising oil prices.
Investment Preferences: UBS favors sectors such as hardware tech, non-ferrous metals, internet, electrical equipment, and brokers within A-shares, while continuing to support large internet companies in H-shares, including JD-SW and BIDU-SW, due to their attractive valuations and shareholder return strategies.
Market Activity: Short selling activity has been significant for BIDU-SW and JD-SW, with notable ratios indicating investor sentiment and market dynamics surrounding these stocks.
HSI Declines by 179 Points; AIA Drops 2%; SHANDONG MOLONG Soars 15%
Market Opening Trends: Hong Kong stocks opened lower, with the HSI down 0.7%, HSCEI down 0.4%, and HSTECH down 0.6%. Notable oil stocks like PETROCHINA and CNOOC saw increases, while several tech stocks, including BABA-W and TENCENT, opened lower.
Sector Performance: In the tech sector, BABA-W opened 2% lower, while JD-SW opened 0.3% higher. Financial stocks showed mixed results, with HSBC HOLDINGS slightly up and AIA down 2%.
Short Selling Activity: Significant short selling was observed across various stocks, with BABA-W and MEITUAN-W experiencing high ratios. The short selling data indicates a cautious sentiment among investors.
Regulatory Investigation: The SFC and ICAC launched an investigation into GUOTAI JUNAN I, leading to a 4.2% drop in its stock price after detaining an employee.
S&P: JD-SW's Expansion into New Business Could Undermine Core Business Strength
Business Strengthening: JD-SW is enhancing its business resilience through growth in the department store and logistics sectors, alongside a proposed acquisition of Germany's Ceconomy AG.
Earnings Challenges: Despite improvements, substantial losses from new ventures like food delivery are expected to limit JD-SW's earnings growth, with an estimated EBITDA margin recovery to 2.8% by 2026.
Competitive Landscape: The end of JD-SW's zero-commission merchant promotion in 2025 raises concerns about merchant retention, while competition from MEITUAN-W and BABA-W remains intense.
Short Selling Data: As of March 11, 2026, JD-SW has a short selling amount of $348.17M with a ratio of 55.943%, indicating significant market skepticism.
<Research>BOCI: JD.com (JD.US) Q4 2025 Results Meet Expectations; Maintained Buy Rating
4Q25 Results Overview: JD-SW's 4Q25 results met expectations with a 2% YoY revenue growth, despite a 3% decline in merchandise revenue and a 20% increase in service revenue.
Future Business Focus: BOCI's report indicates that JD-SW will enhance its core capabilities in 2026, emphasizing the expansion of three new businesses and accelerating AI integration.
Target Price and Rating: Goldman Sachs set a target price of $169 for JD-SW, maintaining a Buy rating based on the positive performance of the 4Q25 results.
Food Delivery Business Strategy: Key priorities for JD-SW's food delivery business in 2026 include UE optimization through commercialization and refined operations, along with cross-selling in core JD Retail.
HSI Starts 152 Points Up; TENCENT Continues Its Rally; NIO-SW Soars 15%
Market Performance: The HSI opened 0.6% higher at 26,112, with notable gains in tech stocks like TENCENT and BIDU-SW, while some stocks like KNOWLEDGE ATLAS and MINIMAX-WP experienced declines.
Export Growth: China's exports for January-February increased by 21.8%, significantly surpassing the previous value of 6.6% and the forecast of 7.1%.
Tech Stock Movements: Various tech stocks, including BABA-W and KUAISHOU-W, saw increases of 1.3-1.5%, while others like MEITUAN-W and NTES-S faced declines.
Automotive Sector Highlights: NIO-SW surged 15% after reporting a profit, while other automotive stocks like BYD COMPANY and LI AUTO-W showed minor increases.
<Research>UBS Reveals Top Choices for Chinese Investors (Table)
UBS Report Findings: UBS identified JD-SW and BIDU-SW as preferred stocks for Chinese investors, both rated as Buy, while Alibaba was removed from the list.
Stock Performance: JD-SW saw a gain of +0.900 (+0.829%) with significant short selling, while BIDU-SW experienced a decline of -1.400 (-1.149%).
Short Selling Data: Notable short selling figures include Tencent at $1.77B and JD-SW at $277.62M, indicating high investor caution.
Market Overview: The report includes various stocks with their respective performance and target prices, highlighting a mix of gains and losses across different companies.
UBS Maintains Preference for Major Chinese Internet Stocks in H-shares, Includes JD and BIDU in Model Portfolio
China's Market Resilience: The MSCI China Index has outperformed global indices by approximately 1.4% since the Iran conflict began, with the CSI 300 Index showing notable stability, indicating that the Chinese equity market provides good diversification for global investors.
Geopolitical Impact on China: Recent geopolitical events have had limited negative effects on the Chinese market due to low oil dependency, substantial oil reserves, and government pricing mechanisms that mitigate the impact of rising oil prices.
Investment Preferences: UBS favors sectors such as hardware tech, non-ferrous metals, internet, electrical equipment, and brokers within A-shares, while continuing to support large internet companies in H-shares, including JD-SW and BIDU-SW, due to their attractive valuations and shareholder return strategies.
Market Activity: Short selling activity has been significant for BIDU-SW and JD-SW, with notable ratios indicating investor sentiment and market dynamics surrounding these stocks.
HSI Declines by 179 Points; AIA Drops 2%; SHANDONG MOLONG Soars 15%
Market Opening Trends: Hong Kong stocks opened lower, with the HSI down 0.7%, HSCEI down 0.4%, and HSTECH down 0.6%. Notable oil stocks like PETROCHINA and CNOOC saw increases, while several tech stocks, including BABA-W and TENCENT, opened lower.
Sector Performance: In the tech sector, BABA-W opened 2% lower, while JD-SW opened 0.3% higher. Financial stocks showed mixed results, with HSBC HOLDINGS slightly up and AIA down 2%.
Short Selling Activity: Significant short selling was observed across various stocks, with BABA-W and MEITUAN-W experiencing high ratios. The short selling data indicates a cautious sentiment among investors.
Regulatory Investigation: The SFC and ICAC launched an investigation into GUOTAI JUNAN I, leading to a 4.2% drop in its stock price after detaining an employee.
S&P: JD-SW's Expansion into New Business Could Undermine Core Business Strength
Business Strengthening: JD-SW is enhancing its business resilience through growth in the department store and logistics sectors, alongside a proposed acquisition of Germany's Ceconomy AG.
Earnings Challenges: Despite improvements, substantial losses from new ventures like food delivery are expected to limit JD-SW's earnings growth, with an estimated EBITDA margin recovery to 2.8% by 2026.
Competitive Landscape: The end of JD-SW's zero-commission merchant promotion in 2025 raises concerns about merchant retention, while competition from MEITUAN-W and BABA-W remains intense.
Short Selling Data: As of March 11, 2026, JD-SW has a short selling amount of $348.17M with a ratio of 55.943%, indicating significant market skepticism.
<Research>BOCI: JD.com (JD.US) Q4 2025 Results Meet Expectations; Maintained Buy Rating
4Q25 Results Overview: JD-SW's 4Q25 results met expectations with a 2% YoY revenue growth, despite a 3% decline in merchandise revenue and a 20% increase in service revenue.
Future Business Focus: BOCI's report indicates that JD-SW will enhance its core capabilities in 2026, emphasizing the expansion of three new businesses and accelerating AI integration.
Target Price and Rating: Goldman Sachs set a target price of $169 for JD-SW, maintaining a Buy rating based on the positive performance of the 4Q25 results.
Food Delivery Business Strategy: Key priorities for JD-SW's food delivery business in 2026 include UE optimization through commercialization and refined operations, along with cross-selling in core JD Retail.
HSI Starts 152 Points Up; TENCENT Continues Its Rally; NIO-SW Soars 15%
Market Performance: The HSI opened 0.6% higher at 26,112, with notable gains in tech stocks like TENCENT and BIDU-SW, while some stocks like KNOWLEDGE ATLAS and MINIMAX-WP experienced declines.
Export Growth: China's exports for January-February increased by 21.8%, significantly surpassing the previous value of 6.6% and the forecast of 7.1%.
Tech Stock Movements: Various tech stocks, including BABA-W and KUAISHOU-W, saw increases of 1.3-1.5%, while others like MEITUAN-W and NTES-S faced declines.
Automotive Sector Highlights: NIO-SW surged 15% after reporting a profit, while other automotive stocks like BYD COMPANY and LI AUTO-W showed minor increases.
