Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy 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>It has become evident that Chinese economy needs stimulus. But why is it not happening? The latest by NDRC and MOF suggests US rate and presidential election are the keys;</li>
<li>What has come forward in the forms of local government debt swap and bank reserve injection is similar to fueling a liquid-fueled missile. Once it starts, it can't roll back;</li>
<li>The biggest swing factor from US presidential election is the Trump Tariff, which can cut China's GDP growth by half. The fueling hopefully can handle impact of such magnitude.</li>
</ul>


It has become evident that Chinese economy needs stimulus. But why is it not happening? The latest by NDRC and MOF suggests US rate and presidential election are the keys;
What has come forward in the forms of local government debt swap and bank reserve injection is similar to fueling a liquid-fueled missile. Once it starts, it can't roll back;
The biggest swing factor from US presidential election is the Trump Tariff, which can cut China's GDP growth by half. The fueling hopefully can handle impact of such magnitude.


What Is Chinese Government Waiting for to Stimulate Its Economy?

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

<ul>
<li>BABA US/PDD US/JD US/VIPS US: Tmall shares recent growth figures and Double 11 initiatives (+/-/-/-)</li>
<li>BABA US/PDD US/SHEIN/4385 JP/4689 JP: AliExpress and Cainiao expand 5-day delivery to three additional countries including Japan (+/-/-)</li>
<li>BABA US/JD US/PDD US: Alibaba launches upgraded AI-based store management tool (+/-/-)</li>
</ul>


BABA US/PDD US/JD US/VIPS US: Tmall shares recent growth figures and Double 11 initiatives (+/-/-/-)
BABA US/PDD US/SHEIN/4385 JP/4689 JP: AliExpress and Cainiao expand 5-day delivery to three additional countries including Japan (+/-/-)
BABA US/JD US/PDD US: Alibaba launches upgraded AI-based store management tool (+/-/-)


[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/VIPS US/4385JP/4689JP/NTES US/MSFT US/BIDU/700HK

<ul>
<li>3690 HK: Meituan's Overseas Version, Keeta, Launches in Riyadh, Saudi Arabia(/)</li>
<li>PDD US/BABA US/JD US: PDD to provide double compensation for overpriced product (//-/-)</li>
<li>700 HK/BABA US: Taobao now accessible through webpages in WeChat (+/+)</li>
</ul>


3690 HK: Meituan's Overseas Version, Keeta, Launches in Riyadh, Saudi Arabia(/)
PDD US/BABA US/JD US: PDD to provide double compensation for overpriced product (//-/-)
700 HK/BABA US: Taobao now accessible through webpages in WeChat (+/+)


[Blue Lotus Daily-TMT Update]:3690 HK/PDD US/BABA US/JD US/700 HK/TCOM US/ATAT US

<ul>
<li>TCOM US: Overseas Travel for National Holiday Grow Faster than Domestic Travel, Potentially Signaling the End of Consumption Downgrading (+)</li>
<li>PDD US: PDD announces another support plan for “quality merchants” (/)</li>
<li>BABA US/JD US/002352 CH: E-commerce players intensify logistics competition in Hong Kong (////-)</li>
</ul>


TCOM US: Overseas Travel for National Holiday Grow Faster than Domestic Travel, Potentially Signaling the End of Consumption Downgrading (+)
PDD US: PDD announces another support plan for “quality merchants” (/)
BABA US/JD US/002352 CH: E-commerce players intensify logistics competition in Hong Kong (////-)


[Blue Lotus Daily-TMT Update]:TCOMUS/PDDUS/BABA/JD/002352CH/700HK/NTES/BILI/002624CH/3888HK/3690HK

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Although the tech sector in Hong Kong has surged over the last couple of weeks there appears to be minimal short covering in US-listed China tech names.</li>
<li>The performance of the "Magnificent 5" China tech names has led the rally as we outlined in <a href="https://www.smartkarma.com/insights/hong-kong-the-glass-is-half-full-time-to-buy-beta" target="_blank" data-smartkarma-citation="insights:134396" rel="noopener">Hong Kong: The Glass Is Half Full, Time to BUY Beta</a> .</li>
<li>The combination of of large outstanding short positions and a significant underweight of HK/China in international funds will lead to further upside in the tech sector.</li>
</ul>


Although the tech sector in Hong Kong has surged over the last couple of weeks there appears to be minimal short covering in US-listed China tech names.
The performance of the "Magnificent 5" China tech names has led the rally as we outlined in Hong Kong: The Glass Is Half Full, Time to BUY Beta .
The combination of of large outstanding short positions and a significant underweight of HK/China in international funds will lead to further upside in the tech sector.


China

PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The Company focuses on digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfillment capabilities for its underlying businesses.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

PDD Holdings (PDD US)

What Is Chinese Government Waiting for to Stimulate Its Economy?

Chinese economy needs stimulus but it's not happening due to US rate and election uncertainties. Debt swap and reserve injection are getting...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/VIPS US/4385JP/4689JP/NTES US/MSFT US/BIDU/700HK

Alibaba's Tmall reports growth, expands delivery services, and launches AI-based store management tool.NetEase's Mobile Game Announces Shutdown

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:3690 HK/PDD US/BABA US/JD US/700 HK/TCOM US/ATAT US

Meituan's overseas version, Keeta, expands to Riyadh; PDD offers double compensation for overpriced products; Taobao now accessible through WeChat...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:TCOMUS/PDDUS/BABA/JD/002352CH/700HK/NTES/BILI/002624CH/3888HK/3690HK

Overseas travel for national holidays on the rise, signaling potential end to consumption downgrading. PDD announces support plan for quality...

Blue Lotus Research Institute

HK/China: THE BIG SHORT (SQUEEZE)

Even though HK/China tech names have surged, short positions have not covered. The large underweight position in HK/China by international funds...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

What Is Chinese Government Waiting for to Stimulate Its Economy?

​Chinese economy needs stimulus but it's not happening due to US rate and election uncertainties. Debt swap and reserve injection are getting...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/VIPS US/4385JP/4689JP/NTES US/MSFT US/BIDU/700HK

​Alibaba's Tmall reports growth, expands delivery services, and launches AI-based store management tool.NetEase's Mobile Game Announces Shutdown

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:3690 HK/PDD US/BABA US/JD US/700 HK/TCOM US/ATAT US

​Meituan's overseas version, Keeta, expands to Riyadh; PDD offers double compensation for overpriced products; Taobao now accessible through WeChat...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:TCOMUS/PDDUS/BABA/JD/002352CH/700HK/NTES/BILI/002624CH/3888HK/3690HK

​Overseas travel for national holidays on the rise, signaling potential end to consumption downgrading. PDD announces support plan for quality...

Blue Lotus Research Institute

HK/China: THE BIG SHORT (SQUEEZE)

Even though HK/China tech names have surged, short positions have not covered. The large underweight position in HK/China by international funds...

David Mudd

Chinese economy needs stimulus but it's not happening due to US rate and election uncertainties. Debt swap and reserve injection are getting...

Alibaba's Tmall reports growth, expands delivery services, and launches AI-based store management tool.NetEase's Mobile Game Announces Shutdown

Meituan's overseas version, Keeta, expands to Riyadh; PDD offers double compensation for overpriced products; Taobao now accessible through WeChat...

Overseas travel for national holidays on the rise, signaling potential end to consumption downgrading. PDD announces support plan for quality...