Citi Research noted that US investors broadly agreed that China's Internet sector offered a very attractive opportunity in light of improving shareholder returns and earnings quality, as well as undemanding valuation.
Citi said that in recent meetings with US investors, the main topics of discussion included the reasons for the recent rebound in China's Internet sector; latest China macro and companies’ underlying fundamentals; and shareholder return policy and valuation.
Specifically, selective long funds turned from underweight to overweight in Chinese stocks, spotted the broker, noting sector ownership stake leaned towards long funds with selected participation from hedge funds.
The most discussed stocks included TENCENT (00700.HK) +4.800 (+1.332%) Short selling $666.58M; Ratio 12.512% and NTES-S (09999.HK) +8.400 (+5.596%) Short selling $71.31M; Ratio 11.525% (NTES.US) , BABA-SW (09988.HK) +3.600 (+4.731%) Short selling $265.65M; Ratio 7.020% (BABA.US) , JD-SW (09618.HK) +6.700 (+5.565%) Short selling $267.60M; Ratio 15.827% (JD.US) , Didi, MEITUAN-W (03690.HK) +0.100 (+0.084%) Short selling $740.85M; Ratio 20.694% , TRIP.COM-S (09961.HK) +14.200 (+3.650%) Short selling $19.99M; Ratio 7.079% (TCOM.US) and TME-SW (01698.HK) +0.900 (+1.800%) (TME.US) . Citi also saw strong interest in Sea Ltd. (SE.US) from long funds and hedge funds.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-03 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
