Daiwa published a research report that in response to the recent meeting of regulators to explain the restoration of market confidence, it is suggested that investors should carefully choose to collect some of the oversold shares.
The bank pointed out that companies can adopt more aggressive share buybacks to restore investor confidence, but the market will face further data security, antitrust regulation and short-term fluctuations, especially in some of the more important industries. Innovation is an important growth factor for the Internet industry, but valuations are affected by regulatory policies.
The bank is bullish on Tencent (0700.HK), NetEase Inc (NTES.US), Baidu Inc (BIDU.US) and Meituan (3690.HK). In addition, the shares of Alibaba Group Holding Ltd (9988.HK), JD.com Inc (9618.HK) and Pinduoduo (PDD.US) are equally attractive.