Deepti Sri · · 1 min readDZ Bank analyst keeps sell position amid optimism around China’s tech slump
An analyst from DZ Bank has maintained his “sell” stance on Chinese stocks. This comes amid increasingly positive sentiment around the country’s tech sector after reports of probes into ride-hailing giant Didi nearing an end, Bloomberg reported.
Manuel Muehl, an analyst who was among the first to issue a bearish call on China’s tech stocks, said the report on wrapping up the Didi probe is “a bit premature and highly differentiated.”
Muehl set a target price of US$85 for the US-listed shares of Alibaba and US$49.5 for JD.com, down nearly 20% from their last close.
The analyst added that the Didi report has been taken “very positively” and that it is too soon to jump to conclusions on other rules that currently affect companies negatively.
China is reportedly mulling lifting a ban on adding new users to Didi and allowing mobile platforms of the ride-hailing firm back on domestic app stores, signaling the country’s plans to spur economic activity from its tech giants.
See also: These are the most active investors in China’s startups
Editing by Miguel Cordon and Lorenzo Kyle Subido
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