Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>Onshore Equity ETF flows in China continued to be positive for 8th week. Southbound Connect flows in July are lower than June.</li>
<li>Baidu, Bilibili and GDS have had positive share price moves on the back of news flow.</li>
<li>The container shipping segment has had a sharp pullback on positive Middle East news and cement maker CNBM flags a loss in the first half.</li>
</ul>


Onshore Equity ETF flows in China continued to be positive for 8th week. Southbound Connect flows in July are lower than June.
Baidu, Bilibili and GDS have had positive share price moves on the back of news flow.
The container shipping segment has had a sharp pullback on positive Middle East news and cement maker CNBM flags a loss in the first half.


The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>PDD US/META US: Temu continues to be the most downloaded app in the US (+)</li>
<li>PDD US : PDD launching new ad-tool to replace previous tools (+)</li>
<li>700 HK: Tencent's Third-Person Shooter Game &lt;Synced&gt; Announces Termination of Service on September 9th (-)</li>
</ul>


PDD US/META US: Temu continues to be the most downloaded app in the US (+)
PDD US : PDD launching new ad-tool to replace previous tools (+)
700 HK: Tencent's Third-Person Shooter Game &lt;Synced&gt; Announces Termination of Service on September 9th (-)


[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.</li><li>From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;</li><li>2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.com</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.comContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Internet - 1Q24 recap & our three stock-picking ideas

<ul>
<li>NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)</li>
<li>BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)</li>
<li>AMZN US/BABA US: TikTok Shop to launch in Spain (-)</li>
</ul>


NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)
BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)
AMZN US/BABA US: TikTok Shop to launch in Spain (-)


[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

<ul>
<li>JD US/PDD US /BABA US: JD launches new low-priced initiative to target lower-tier market (+/-/-)</li>
<li>BABA US/BILI US/BIDU US/700HK: Bilibili and Xiaohongshu inaccessible after 38-minute cloud crash (-/-/+/+)</li>
<li>700 HK: Tencent announces upgraded LLM training system . (+)</li>
</ul>


JD US/PDD US /BABA US: JD launches new low-priced initiative to target lower-tier market (+/-/-)
BABA US/BILI US/BIDU US/700HK: Bilibili and Xiaohongshu inaccessible after 38-minute cloud crash (-/-/+/+)
700 HK: Tencent announces upgraded LLM training system . (+)


[Blue Lotus Daily-TMT Update]:JD/PDD/BABA/BILI/BIDU/700HK/3888HK/1024HK/NTES /3690HK/TCOM/SE/CPNG/BZ

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

ETF flows in China have continued to support the overall A share market while Southbound Connect flows support Hong Kong shares. Positive news for...

David Mudd

[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.

Blue Lotus Research Institute

Internet - 1Q24 recap & our three stock-picking ideas

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our...

CMB International

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:JD/PDD/BABA/BILI/BIDU/700HK/3888HK/1024HK/NTES /3690HK/TCOM/SE/CPNG/BZ

JD launches new low-priced initiative to target lower-tier market, Bilibili and Xiaohongshu experience cloud crash, Tencent announces upgraded LLM...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

ETF flows in China have continued to support the overall A share market while Southbound Connect flows support Hong Kong shares. Positive news for...

David Mudd

[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

​Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.

Blue Lotus Research Institute

Internet - 1Q24 recap & our three stock-picking ideas

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our...

CMB International

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

​Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:JD/PDD/BABA/BILI/BIDU/700HK/3888HK/1024HK/NTES /3690HK/TCOM/SE/CPNG/BZ

​JD launches new low-priced initiative to target lower-tier market, Bilibili and Xiaohongshu experience cloud crash, Tencent announces upgraded LLM...

Blue Lotus Research Institute

Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

JD launches new low-priced initiative to target lower-tier market, Bilibili and Xiaohongshu experience cloud crash, Tencent announces upgraded LLM...