Compared with U.S. growth stocks, China's growth names still come with rather demanding valuations, opined Hong Hao, Managing Director and Head of Research at BOCOM International. He believed the value segment will continue to see valuation recovery in the second half of 2021.
BABA-SW (09988.HK)'s regulation risk has basically been mitigated at this stage, said Hong. Despite magnified near-term investment, the group's key business inputs will help strengthen its penetration in lower-tier cities. This, coupled with solid business stability, will likely reduce the risk of further price downside for BABA-SW.
BABA-SW (09988.HK)'s regulation risk has basically been mitigated at this stage, said Hong. Despite magnified near-term investment, the group's key business inputs will help strengthen its penetration in lower-tier cities. This, coupled with solid business stability, will likely reduce the risk of further price downside for BABA-SW.