Daiwa's report states that lowering mortgage rates in the mainland and issuing 0.5 billion yuan worth of consumer vouchers in Shanghai can have a positive effect on mainland consumer consumption, but its recent impact remains slight until the government announces a sizable fiscal stimulus plan. The bank sees huge potential for JD.com-SW (09618.HK) to be re-rated, believing that the company will benefit from the policy of trading in old for new.

The bank reaffirms its 'buy' rating for JD.com, raising the target price from 157 yuan to 210 yuan, equivalent to a forecast P/E ratio of 9 times (previously 6 times); considering the increased consumption due to wealth effects, it raises the transaction amount for commodities in 2025 to 2026, adjusts the corresponding earnings per share forecast by 6% to 7% for the same period to reflect operational leverage and lower-than-expected marketing costs.