UBS's upgrade to the Chinese market rating to “increase its holdings”, Tencent, Meituan Kuaishou, etc. received the most attention
In a recent report released by UBS (UBS), the rating of the Chinese stock market was upgraded to “gain”, indicating that analysts have a positive view of the Chinese market.
The report notes that since improving the rating of the Chinese market, UBS has held discussions with more than 30 investors from different regions and investment styles. Compared to six months ago, the market is more accepting of a positive stance on China.
Investors are concerned about the fundamentals of the Chinese market. UBS's index-weighted EPS (earnings per share) methodology shows that the fundamentals of the Chinese stock market are not bad. Investors believe that lower valuation levels are attractive to the market, and dividends and high-visibility repurchase actions are a factor supporting the valuation.
UBS also listed the most popular Chinese companies in the report, including Tencent, Agricultural Bank, Changjiang Electric Power, Meituan, Ctrip, Kuaishou, China Resources Land, CRRC, Yum China, China Resources Brewery, and New Oriental.
UBS lists the most popular Chinese stocks, including Tencent Meituan Kuaishou, etc. The stock price in the chart ends on May 2
On April 19, the China Securities Regulatory Commission announced five capital market cooperation measures with Hong Kong, including supporting the integration of RMB stock trading counters into Hong Kong Stock Connect. According to analysis by industry insiders, the five measures introduced this time will help provide incremental capital for the Hong Kong stock market, enhance the medium- to long-term liquidity of Hong Kong stocks, and enhance the attractiveness of financing. Under this influence, Southbound Capital continued to increase its positions in Hong Kong stocks, boosting positive market sentiment.
As of the close of trading on May 6, Kuaishou (01024) closed at HK$61.95 per share. In the past month, Kuaishou's stock price had risen 25.91% cumulatively, surpassing the 15.8% increase of the Hang Seng Technology Index in the past month. UBS gave Kuaishou a target price of HK$85. There is still plenty of room for growth compared to the current stock price performance.
According to news, the 2024 Kuaishou E-commerce Gravity Conference will be held in Wuzhen starting on the 15th of this month. According to public information, this year, Kuaishou achieved a comprehensive upgrade in the four dimensions of content, shelf, business tools, and marketing system, further helping the brand build a phenomenal superbrand IP event. At the March Super Brand Day event, which recently ended, a number of brands such as Deyou, Huaxizi, Perea, and Bubandi ushered in a growth explosion in Kuaishou.