Daiwa Foresees CN Dotcom Bellwethers to Hail Opportunities Next Yr; Top Picks Tencent, NTES, PDD, Kuaishou

The broker reiterated its bullish stance on the dotcom sector, with its top picks being $TENCENT(00700.HK)$ , NetEase $NetEase(NTES.US)$ , Pinduoduo $PDD Holdings(PDD.US)$ and $KUAISHOU-W(01024.HK)$, as it expected these companies to outshine their peers in terms of next year's revenue growth prospects.

Daiwa was also bullish on $Tencent Music(TME.US)$ , which has a clear leadership position in the mainland market, and $Trip.com(TCOM.US)$ , which is defensive and more resilient than other verticals because of its undemanding valuation. Other tactical buy calls were $Vipshop(VIPS.US)$ and $KE Holdings(BEKE.US)$ , both of which harness share buybacks.