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XPeng Inc. American depositary shares each representing two Class A ordinary shares (NYSE:XPEV)

Real-time price:$18.71

XPeng Inc. designs, develops, manufactures and markets Smart electric vehicles principally in China. It also offers autonomous driving software system. XPeng Inc. is based in Guangzhou, China....

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Here we provide our AYA proprietary alpha stock signals for all premium members on our AYA fintech network platform. Specifically, a high Fama-French multi-factor dynamic conditional alpha suggests that the stock is likely to consistently outperform the broader stock market benchmarks such as S&P 500, Dow Jones, Nasdaq, Russell 3000, MSCI USA, and MSCI World etc. Since March 2023, our proprietary alpha stock signals retain U.S. Patent and Trademark Office (USPTO) fintech patent protection, approval, and accreditation for 20 years. Our homepage and blog articles provide more details on this proprietary alpha stock market investment model with robust long-term historical backtest evidence.

Sharpe-Lintner-Black CAPM alpha (Premium Members Only) Fama-French (1993) 3-factor alpha (Premium Members Only) Fama-French-Carhart 4-factor alpha (Premium Members Only) Fama-French (2015) 5-factor alpha (Premium Members Only) Fama-French-Carhart 6-factor alpha (Premium Members Only) Dynamic conditional 6-factor alpha (Premium Members Only) Last update: Saturday 12 April 2025

Becky Berkman

2025-02-13 02:31:42

Bullish

Quantitative fundamental analysis

Our latest podcast deep-dives into our recent fundamental stock synopsis, China Internet companies continue to enjoy global reach and business model monetization amid more intense competition worldwide, in support of our AYA fintech network platform operations.


$BABA $TME $BIDU $NTES $JD $PDD $IQ $BILI $NFLX $AMZN $AAPL $WB $DIS $DISH $CMCSA 

$GOOGL $GOOG $KKR $NIO $RIVN $XPEV $AXP $V $MA $PYPL $PLTR $ORCL $CSCO $ASML 

$KO $HPE $IBM $DOCU $QUBT $RGTI $IONQ $QBTS $CVS $BBAI $CRWD $RDDT $TTD $HOOD 


#fibonacci #shortreversal #longreversal #murphyrank #shortrange #longrange #bollinger #industry #macd 

From Alibaba and Tencent to Baidu, JD, and iQiyi, China Internet tech titans continue to enjoy global reach, business model monetization, and new improvements in sales and profits worldwide.

The original blog article is available on our AYA fintech network platform. https://ayafintech.network/blog/stock-synopsis-china-internet-companies-continue-to-enjoy-global-reach-business-model-monetization-and-new-improvements-in-sales-and-profits/

This fun podcast is about 10 minutes long (with smart AI podcast generation from Google NotebookLM). https://bit.ly/3Cv4T0f

We launch our unique coverage of top 25 China Internet stocks. In the post-pandemic period, we believe the mainstream fundamental forces reflect some steady and robust consumption recovery, although the Chinese economy now faces some rare headwinds and challenges. Specifically, China suffers from socio-economic malaise in the residential real estate sector, and the Xi administration now directs new fiscal stimulus programs toward macro recovery across the mainland financial markets (Shanghai, Shenzhen, Hong Kong, and Macao). Key tech titans benefit substantially from the macro maneuver. These tech titans include Tencent (TME), Alibaba (BABA), Baidu (BIDU), NetEase (NTES), PinDuoDuo (PDD), JD.com (JD), iQiyi (IQ), Bilibili (BILI), Kuaishou Technology, and Meituan. The Xi administration continues to focus on common prosperity and the wider Chinese dream in the dual form of high-quality economic growth and technological advancement with an increasingly supportive regulatory environment. We expect global institutional investors to partially re-engage with the strategic sector of top 25 China Internet stocks in the next few years. From BlackRock and Vanguard to State Street and PIMCO, these global institutional investors choose to revisit these China Internet stocks with unique historical distortions in their fundamental prospects and financial results over the past pandemic years. As China Internet has historically been a cyclical high-growth sector, we can expect to see mid-to-long-run sustainable compound growth rates in both sales and profits. With the latest technological advances in artificial intelligence, virtual reality, and 5G high-speed telecommunication, at least some, but not all, of the top 25 China Internet stocks enjoy favorable and impressive P/E and P/B multiples due to positive network effects, information cascades, and scale and scope economies from the massive population of 1.4 billion people in China (or more than 1 billion smartphone users in Mainland China).

As the mainstream business models for China Internet (e-commerce, online advertisement, and digital entertainment) seem to have reached their mature stages, we expect to see huge opportunities for some China Internet companies to generate mid-to-longer-term sustainable growth rates, high-single-digits to even double-digits, in both sales and profits as the broader sector pursues substantial productivity gains due to AI, VR, and 5G new technology adoption. We believe the supportive regulatory environment would be especially favorable to several Chinese tech titans across several vital niche sectors such as video games, Esports, cloud services, electric vehicles (EV), and autonomous robotaxis. These vital niche sectors seem to amount to RMB$3 trillion annual sales by 2025-2027. Also, business services and fintech platforms provide hefty long-term growth opportunities, despite economic policy uncertainty around business model monetization, antitrust scrutiny, and e-commerce regulation in China. In summary, we combine our proprietary alpha stock signals, fundamental insights, and new ESG scores to help better inform our top-of-mind China Internet stock investment themes.

Over the past 35 years, China has successfully transformed from a low-income economy to a mid-income East Asian country with a secure and robust middle class, better employment, higher-quality economic growth, and a reasonably better quality of life. Since October 2022, the most recent National Congress of the Chinese Communist Party (CCP) has formalized the next phase of China’s economic governance framework. In this broader context, China’s regulatory regime changes over the Internet incumbents can help shift the delicate balance in favor of both economic and non-economic policy goals such as fair competition, consumer protection, and online data security. In addition to other risk considerations, these regulatory changes can help boost significantly the equity risk premiums for the Internet incumbents in recent years. These tech titans have risen to the challenge with almost real-time adjustments in their business models, monetization strategies, and best practices to help further extend sustainable sales growth and operational profitability in the longer run.

These Chinese tech titans still face several business risks as the recent regulatory changes affect the medium-term sales, profits, and cash flows across the entire Internet sector. The Chinese government launches new Internet rules and regulations in support of better online consumer protection, privacy control, social surveillance, and freemium monetization. These new Internet rules and regulations seem to cause a pervasive slowdown in online sales for e-commerce, advertisement, mobile video games, and Esports etc. At the same time, these Internet rules and regulations may inadvertently reduce corporate support for new initiatives and innovations in cloud services, fintech platforms, electric vehicles (EV), and autonomous robotaxis (AR), in-game purchases, and some other online business processes. Despite the recent demographic changes and structural challenges such as post-pandemic healthcare, rural poverty, and longer longevity, and Sino-American trade rivalry, Chinese tech titans can continue to benefit substantially from the largest middle class worldwide, a potent consumer market, robust and resilient global supply chains, new online growth engines, and extensive regional manufacturing capabilities in East Asia. In time, these competitive advantages help secure favorable foreign investment returns. In combination, these economic insights shine new positive light on at least some, but not all, of the top 25 China Internet companies.

The vast majority of the top 25 China Internet companies are likely to further leverage online business models and freemium monetization capabilities through world-class cloud services and software solutions (Software-As-A-Service (SAAS)) outside the traditional consumption sector. Also, the China Internet companies can further tap into the large consumption sector with more inclusive fintech platforms, local merchant services, and food delivery robotaxis. For several Chinese tech titans such as Alibaba (BABA), Tencent (TME), and Baidu (BIDU), their foreign subsidiaries can further expand their geographical reach to the rest of the world, especially North America, Western Europe, and East Asia. All of these recent developments help accelerate the next paradigm shift in the CCP’s national strategy in favor of longer-term growth performance for the Internet incumbents. To the extent that the financial benefits can manifest in higher sales, profits, and cash flows across the China Internet sector, we believe the dominant tech titans retain rare unique business niches and competitive advantages in support of both favorable stock market valuation and operational performance. These recent economic policy developments reflect at least part of the paradigm shift toward increasingly more inclusive state capitalism with Chinese characteristics.

In practice, the conventional economic theories cannot perfectly explain the growth miracles in China over the past 35 years. The new classical theory fails to account for monetary non-neutrality, a lack of monetary policy effectiveness due to strict cross-border capital controls, and significantly less fiscal-monetary policy coordination in Mainland China. Also, the New Keynesian theory fails to explain the adverse impact of interest rate hikes on residential real estate prices in light of substantially lower residential property affordability in Mainland China in recent years. In addition, structural supply-side reforms may or may not help render global supply chains more robust and more resilient in response to hefty changes in world demand for high-tech advancements, such as semiconductor microchips, graphical processing units (GPU), 5G high-speed telecom networks, and virtual realty (VR) headsets for the metaverse. In light of these economic considerations, we believe it takes a totally new skillset and macro analytical framework for us to better understand the new China Internet sector. In essence, China Internet serves as a cyclical fair-trade sector in the current trade war between the U.S. and China. This China Internet sector seems to be less of a buy-and-hold investment theme for many global institutional investors, although the Xi government seeks to re-establish the longer-term sustainable growth outlook for the China Internet sector.

During the pandemic years from 2020 to 2023, the vast majority of the top 25 China Internet stocks experienced sharp decreases in stock market valuation by at least 25% to 45%. We can attribute this significant industry rotation to a few fundamental reasons. First, extremely strict anti-epidemic measures not only compressed domestic consumption, but also raised rampant concerns about the Xi administration’s Covid exit strategy. As a result, institutional investors withdrew their foreign capital in a new flight to higher quality. Second, key Internet incumbents were particularly vulnerable to new geopolitical tensions in light of the trade war between the U.S. and China, the Russia-Ukraine war in Eastern Europe, and the relentless regional conflict between Israel, Iran, Lebanon, Hamas, and the Palestinians. Third, at least some of the fiscal and monetary stimulus programs turned out to be weak and ineffective in response to sluggish economic growth, deflation, unemployment, and residential real estate slowdown in China. Fourth, the Xi administration chose to clamp down on the spiritual opium of online video games by restricting children from playing these video games more than one hour per day. This draconian policy measure inevitably led to significantly less monetization for several China Internet companies such as Tencent (TME), Weibo (WB), NetEase (NTES), iQiyi (IQ), Baidu (BIDU), and ByteDance (the parent company of the globally popular video-sharing app TikTok). Finally, the current series of interest rate hikes from the People’s Bank of China (PBOC) further compressed stock market valuation for many of the China Internet companies in recent years.

As we re-assess the keystone fundamental factors and forces for the recent industry rotation away from the China Internet sector, we believe most of these considerations seem to have turned from economic headwinds to at least incrementally positive economic tailwinds. Back in December 2022, the Joint Disease Prevention and Control Mechanism of the CCP’s State Council published 10 Covid exit policy measures. These measures included lifting all Covid tests and health code requirements for domestic travel and some foreign travel in the Pacific region. From early-January 2023 onwards, China’s National Health Commission announced downgrading Covid to a Level 2 epidemic disease. The CCP’s State Council further released a series of travel policy measures to better mold the post-pandemic new normal steady state. These policy measures included removing Covid tests and quarantines for inbound travelers, cancelling passenger load restrictions on international flights, and optimizing domestic travel arrangements between Mainland China and Hong Kong and Macao.

Although some other geopolitical tensions persist in the post-pandemic period, the Chinese government has chosen to effectively reset the clock for China Internet American Depositary Receipts (ADR) de-listing risks for at least 3 years. The CCP’s Public Company Accounting Oversight Board (PCAOB) announced in December 2022 a new requirement for issuer audit engagements for all Chinese companies with headquarters in Mainland China, Hong Kong, and Macao. In accordance with the Chinese SEC statement, this policy change empowered the SEC to investigate completely issuer audit engagements for China Internet companies with ADR arrangements in America. We believe this positive development would effectively remove the de-listing risks for several China Internet companies for at least 3 years. In spite of the fair-trade rivalry between the U.S. and China, these tech titans would continue to enjoy dual status in China and America for greater foreign capital diversification.

The CCP’s Central Economic Work Conference (CEWC) reiterated its central emphasis on economic development and macrofinancial stability in the 5-year time frame from early-2023 to late-2027. First, the CEWC aims to help boost substantially domestic demand with state subsidies, tax breaks, and other non-cash incentives in support of greater household income, consumption, and investment. Second, the CEWC seeks to transform the modern industrial system with AI, VR, and 5G high-speed online networks, upgrades, digital downloads, and green energy solutions. Third, the CEWC attempts to help ensure equal government support for both state and private enterprises (outside some strategic sectors such as semiconductor microchip production, high-speed cloud computation, artificial intelligence (AI), virtual reality (VR), and the metaverse etc). Fourth, the CEWC welcomes foreign direct investments (FDI), especially from North America, Western Europe, and some parts of the Asia-Pacific region. Fifth, the CEWC takes some effective policy measures to prevent macro financial risks, with a central emphasis on promoting stable and robust economic development in the residential real estate market. In this broader context, we believe many of the prior fundamental factors, forces, and considerations seem to have turned from major economic headwinds to at least incrementally positive economic tailwinds.

For the online gaming sector specifically, we believe the regulatory environment has become more benign with substantially more license approvals for video games in recent years. The National Press and Publication Administration (NPPA) approved far more than 150 domestic game titles from October 2022 to mid-2024. The vast majority of the resultant game licenses were for mobile games, and the residual game licenses were exclusively for PC and console games. One of the most popular Chinese video games turns out to be Black Myth: Wukong. Its game play follows the inspiration from the classical Chinese novel Journey to the West, and then follows an anthropomorphic monkey Sun Wukong from the novel. This action role-play video game allows each player to fight both villains and monsters through the westward journey with a unique staff in 3 different staff stances (the smash, pillar, and thrust stances). Through this rare unique gameplay and storyline, the black myth for Wukong symbolizes the current world reality that China continues to deal with domestic socio-economic policy issues under fair-trade pressures from the U.S. and its western allies.

By comparison, the NPPA approved only 54 foreign game titles within the same time frame. This clear comparison indicates a more benign regulatory environment for the online gaming sector in China, although the Xi administration characterizes online video games as modern spiritual opium for children, and as a result, imposes a strict restriction on screen time of no more than one hour per day. On balance, we believe the broader regulatory environment for Chinese video games continues to be relatively benign. However, some of the China Internet companies may find it harder to monetize on freemium mobile games, digital downloads, in-game purchases, cosmetic avatar accessories, and software upgrades due to the stringent restriction on screen time in China.

For the fintech sector specifically, Ant Financial Group’s consumer finance unit received new regulatory approval from the Banking and Insurance Regulatory Commission (BIRC) in late-2022 to raise additional capital from RMB$8 billion to RMB$18.5 billion. Ant Financial Group continues to serve as the largest shareholder with a unique 50% majority equity stake in the consumer finance company after this major capital injection. As of mid-2024, Ant Financial Group runs the world’s largest mobile fintech payment platform, Alipay, with more than 1.3 billion users and 80 million merchants in China. Through these central business operations, Ant Financial Group continues to provide inclusive and convenient mobile financial services to both retail consumers and small-to-medium enterprises (SME) in China.

More broadly, the Cyberspace Administration of China (CAC) seeks to encourage profitable and sustainable development of Internet tech titans in China. Specifically, the CAC attempts to favor open and transparent economic development with supportive regulatory norms and values in addition to social and economic benefits for many Internet companies. In the longer run, we believe many Internet companies can benefit substantially from the broader benign and supportive regulatory environment in China. In support of better technological advances, this economic reality remains rock-solid especially when the Chinese government seeks to further outcompete the U.S. and its western allies in several technologically driven markets, such as e-commerce, video games, cloud services, fintech platforms, electric vehicles (EV), autonomous robotaxis (AR), and even business services worldwide.

All these positive fundamental factors, forces, and considerations shine new light on China Internet tech titans. From BlackRock and Vanguard to State Street and PIMCO, many global institutional investors are likely to revisit our chosen top 25 China Internet stocks, some of which list their foreign equity stakes as ADRs on NYSE and NASDAQ. To the extent that we expect the China Internet companies to experience fundamental improvements in both sales and profits over the next few years, we believe some of the Chinese tech titans are likely to see greater and faster bottom-line growth acceleration in 2024-2026. In a fundamental view, our top targets include Tencent (TME), Alibaba (BABA), Baidu (BIDU), iQiyi (IQ), PinDuoDuo (PDD), NetEase (NTES), JD.com (JD), Bilibili (BILI), Kuaishou Technology, and Meituan.

In a post-pandemic fundamental view, we prefer direct consumption, e-commerce, and other local community merchant services, to online ads, search engines, and digital forms of video entertainment (mobile video games, films, movies, and live concerts), because we believe direct consumption would be the earliest to deliver tangible top-line and bottom-line benefits through more robust and more resilient global supply chains in the next few years. From an online regulation perspective, we believe online games garner the greatest growth potential for positive sales surprises due to the broader, more benign, and more inclusive regulatory environment in light of the major domestic video-game license approvals in recent years. In a normative view, we believe some of the top 25 China Internet companies, especially video game publishers, can out-compete their North American, European, and Japanese rivals in due course. Specifically, we expect to see more new video games with the unique Chinese characteristics of game progressions for fair monetization. Black Myth: Wukong serves as a good example of this gameplay design in the broader context of Historical Mandarin China. Tencent (TME) and NetEase (NTES) arise as the 2 largest mainstream Chinese video game publishers with global ambitions. In addition to these China Internet stocks, we would prefer some other China Internet stocks with cyclically lower stock market valuation but rock-solid fundamental momentum. These other China Internet stocks include Bilibili (BILI), iQiyi (IQ), and Kuaishou Technology. Billions of Chinese viewers continue to enjoy video clips, films, movies, soap opera series, manga animations, and other forms of online entertainment from Bilibili (BILI), iQiyi (IQ), and Kuaishou Technology. These China Internet operators can differ dramatically from western video-streaming platforms such as Netflix (NFLX), Amazon Prime (AMZN), Apple TV (AAPL), YouTube (GOOG), and Disney+ (DIS), because the former often tailor their online video contents to the increasingly capitalist, inclusive, but Chinese modern life with smartphones, mobile payments, almost real-time reviews, and many other high-tech software solutions.

With U.S. patent accreditation and protection for 20 years, our AYA fintech network platform provides proprietary alpha stock signals and personal finance tools for stock market investors.

Smart investors can consult our proprietary alpha stock signals to ferret out rare opportunities for transient stock market undervaluation. Our analytic reports help many stock market investors better understand global macro trends in trade, finance, technology, and so forth. Most investors can combine our proprietary alpha stock signals with broader and deeper macrofinancial knowledge to win in the stock market.

Through our proprietary alpha stock signals and personal finance tools, we can help stock market investors achieve their near-term and longer-term financial goals. High-quality stock market investment decisions can help investors attain the near-term goals of buying a smartphone, a car, a house, good health care, and many more. Also, these high-quality stock market investment decisions can further help investors attain the longer-term goals of saving for travel, passive income, retirement, self-employment, and college education for children. Our AYA fintech network platform empowers stock market investors through better social integration, education, and technology.

Stock Synopsis: Top China Internet companies continue to enjoy global reach, business model monetization, and new improvements in sales and profits. - Blog - AYA fintech network platform provides proprietary alpha stock signals and personal finance tools for stock market investors.

Top-of-mind China Internet companies continue to enjoy global reach, new business model monetization...

https://ayafintech.network/blog/stock-synopsis-china-internet-companies-continue-to-enjoy-global-reach-business-model-monetization-and-new-improvements-in-sales-and-profits/\nThis

Olivia London

2025-01-23 02:20:45

Bullish

Quantitative fundamental analysis

President Donald Trump blames China for the long prevalent U.S. trade deficits and several other social and economic deficiencies.

In recent years, President Donald Trump blames China for the long prevalent high U.S. trade deficits against the middle kingdom. Now China seems to hollow out the American industrial homeland from smartphones and semiconductor microchips to electric vehicles (EV), drones, high-speed broadband networks, cloud services, and even large language models (LLM) for generative artificial intelligence. President Trump further blames China for causing the Covid pandemic crisis worldwide. Also, President Trump accuses China of attacking the U.S. and its western allies with fentanyl in the current opioid crisis. Given his U.S. domestic economic protectionism, President Trump seeks to double down on the hardline trade war with China. Specifically, President Trump seeks to impose hefty tariffs, export restrictions, and indefinite bans on many foreign investment categories against China. As President Trump moves into his second term, he continues to view China as a geopolitical adversary in a zero-sum game. In order to make America great again, many supporters seem to think only President Trump and his hardcore cabinet members can come up with hardline economic policies, sanctions, and regulations to tame the respective foes and rivals in Beijing. Political tensions between the U.S. and China continue to persist and even exacerbate in recent years. As a result, the bilateral relations between the U.S. and China seem to rest on flimsy foundations. Nowadays, geopolitical alignment often reshapes and reinforces asset market fragmentation in the wider context of financial deglobalization. Around the world, several western governments seek to incorporate new elements of global resilience into economic statecraft.

Today Chinese leaders face few fears, phobias, and insecurities in China’s bilateral relations with America.
In China, President Xi Jinping and his cabinet members may not view the new Trump second term with fear and trepidation. These Chinese leaders, technocrats, and diplomats already learned much from the Trump first term, the Biden administration, and the populist return of Donald Trump to the White House in recent years. President Trump tends to apply economic protectionism across many industrial sectors and categories with fresh geopolitical tensions and frictions on the global stage. Early in his second term, President Trump declares retreats from the international Paris climate agreement, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and even the World Health Organization (WHO). In effect, these complete withdrawals highlight the fact that the new Trump administration tends to undertake unilateral measures in support of greater economic protectionism in America. Despite the growing trade tensions, disputes, and frictions between Beijing and Washington, the Xi administration still seeks to navigate new confrontations in global trade, finance, and technology. Also, the new Trump administration may impose new tariffs and other economic sanctions on Canada, Mexico, and some other western allies. This hardline approach would encourage many countries, such as France, Germany, Japan, and Australia, to hedge their foreign investment bets outside North America. Specifically, these countries may choose to build better ties with Beijing, partly through its Belt-and-Road Initiative, in response to greater economic policy uncertainty in Washington. Although the U.S. and China may inadvertently stumble into the proverbial Thucydides trap, we believe the best likelihood of military threats between these dual superpowers remains quite low. Over the past decade, President Trump has not shown any deep and extreme ideological inclinations. It does not seem likely for the current competition between the U.S. and China to further escalate into a more destructive New Cold War. Although President Trump sees more realism in the current balance of power between the U.S. and China, he strives to stop-and-prevent wars in the hot and lofty pursuit of world peace. In recent years, President Trump has reiterated his intentions to coordinate truces, ceasefires, and peaceful resolutions of the relentless Russia-Ukraine war in Eastern Europe, as well as the current conflicts between Israel and Iran, Lebanon, Hamas, and the Palestinians in the Middle East. The new Trump administration seeks to better contain China, its recent rise on the global stage of economic growth, and endless interference over Taiwan along the Pacific first island chain.

$META $MSFT $AAPL $AMZN $GOOG $GOOGL $TSLA $NVDA $AMD $ARM $QCOM $TSM $INTC $AVGO 

$BABA $BIDU $TME $PDD $JD $NIO $XPEV $BILI $RIVN $ASML $CSCO $ORCL $SNPS $BRK.A $BRK.B 

#size #value #momentum #profitability #assetgrowth #marketrisk #revenuegrowth #dividendyield #industry 

#fibonacci #murphyrank #bollinger #shortrange #longrange #shortreversal #longreversal #accrual #issuance 

AYA fintech network platform https://ayafintech.network/blog/president-trump-blames-china-for-the-long-prevalent-us-trade-deficits-and-other-social-and-economic-woes/

President Donald Trump blames China for the long prevalent U.S. trade deficits and several other social and economic deficiencies. - Blog - AYA fintech network platform provides proprietary alpha stock signals and personal finance tools for stock market investors.

President Donald Trump blames China for the long prevalent U.S. trade deficits and several other soc...

https://ayafintech.network/blog/president-trump-blames-china-for-the-long-prevalent-us-trade-deficits-and-other-social-and-economic-woes/

Monica McNeil

2024-10-27 08:43:08

Bullish

Quantitative fundamental analysis

Stock Synopsis: Top China Internet companies continue to enjoy global reach, business model monetization, and new improvements in sales and profits.

We launch our unique coverage of top 25 China Internet stocks. In the post-pandemic period, we believe the mainstream fundamental forces reflect some steady and robust consumption recovery, although the Chinese economy now faces some rare headwinds and challenges. Specifically, China suffers from socio-economic malaise in the residential real estate sector, and the Xi administration now directs new fiscal stimulus programs toward macro recovery across the mainland financial markets (Shanghai, Shenzhen, Hong Kong, and Macao). Key tech titans benefit substantially from the macro maneuver. These tech titans include Tencent (TME), Alibaba (BABA), Baidu (BIDU), NetEase (NTES), PinDuoDuo (PDD), JD.com (JD), iQiyi (IQ), Bilibili (BILI), Kuaishou Technology, and Meituan. The Xi administration continues to focus on common prosperity and the wider Chinese dream in the dual form of high-quality economic growth and technological advancement with an increasingly supportive regulatory environment. We expect global institutional investors to partially re-engage with the strategic sector of top 25 China Internet stocks in the next few years. From BlackRock and Vanguard to State Street and PIMCO, these global institutional investors choose to revisit these China Internet stocks with unique historical distortions in their fundamental prospects and financial results over the past pandemic years. As China Internet has historically been a cyclical high-growth sector, we can expect to see mid-to-long-run sustainable compound growth rates in both sales and profits. With the latest technological advances in artificial intelligence, virtual reality, and 5G high-speed telecommunication, at least some, but not all, of the top 25 China Internet stocks enjoy favorable and impressive P/E and P/B multiples due to positive network effects, information cascades, and scale and scope economies from the massive population of 1.4 billion people in China (or more than 1 billion smartphone users in Mainland China).

As the mainstream business models for China Internet (e-commerce, online advertisement, and digital entertainment) seem to have reached their mature stages, we expect to see huge opportunities for some China Internet companies to generate mid-to-longer-term sustainable growth rates, high-single-digits to even double-digits, in both sales and profits as the broader sector pursues substantial productivity gains due to AI, VR, and 5G new technology adoption. We believe the supportive regulatory environment would be especially favorable to several Chinese tech titans across several vital niche sectors such as video games, Esports, cloud services, electric vehicles (EV), and autonomous robotaxis. These vital niche sectors seem to amount to RMB$3 trillion annual sales by 2025-2027. Also, business services and fintech platforms provide hefty long-term growth opportunities, despite economic policy uncertainty around business model monetization, antitrust scrutiny, and e-commerce regulation in China. In summary, we combine our proprietary alpha stock signals, fundamental insights, and new ESG scores to help better inform our top-of-mind China Internet stock investment themes.



$BABA $TME $BIDU $JD $PDD $NTES $NIO $XPEV $ATHM $BILI $IQ $KKR $WB $SE $SHOP $AMZN 

$META $MSFT $AAPL $GOOG $GOOGL $TSLA $NVDA $AMD $QCOM $AVGO $WMT $TGT $EBAY 

$ETSY $BBY $X $TWTR $PLTR $SNAP $PINS $NFLX $DIS $ASML $TMUS $T $VZ $DISH $CMCSA 

#size #value #momentum #profitability #assetgrowth #marketrisk #revenuegrowth #dividendyield #industry 

#fibonacci #bollinger #murphyrank #shortrange #longrange #shortreversal #longreversal #macd #accrual 

AYA fintech network platform https://ayafintech.network/blog/stock-synopsis-china-internet-companies-continue-to-enjoy-global-reach-business-model-monetization-and-new-improvements-in-sales-and-profits/

Stock Synopsis: Top China Internet companies continue to enjoy global reach, business model monetization, and new improvements in sales and profits. - Blog - AYA fintech network platform provides proprietary alpha stock signals and personal finance tools for stock market investors.

Top-of-mind China Internet companies continue to enjoy global reach, new business model monetization...

https://ayafintech.network/blog/stock-synopsis-china-internet-companies-continue-to-enjoy-global-reach-business-model-monetization-and-new-improvements-in-sales-and-profits/

Apple Boston

2024-09-08 08:13:34

Bullish

Quantitative fundamental analysis

Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. https://ayafintech.network/blog/our-proprietary-alpha-investment-model-outperforms-most-stock-market-benchmarks-february-2024/

We implement our proprietary alpha investment model for positive U.S. stock signals.

A complete model description is available on our AYA fintech network platform.

In a nutshell, our proprietary alpha stock investment model comprises smart-beta exposure to 6 fundamental factors such as size, value, momentum, operating profitability, asset investment, and market risk.

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Our competitors thus keep their proprietary algorithm in a black box.

We think outside the box, challenge the status quo, and so offer our U.S. patent publication for free. https://bit.ly/2zhN68L

Our U.S. patent publication is available on the World Intellectual Property Office (WIPO) official website: https://bit.ly/2zhN68L

We believe in the core conviction that we can carry out arduous quantitative work for the typical stock market investor who would otherwise spend too much time crunching data to generate economic insights into the fundamental prospects of U.S. individual stocks.

The proprietary alpha investment model estimates long-term average abnormal returns for U.S. individual stocks and then ranks these stocks in accordance with their dynamic conditional alpha signals.

$MSFT $AAPL $GOOG $GOOGL $AMZN $META $NVDA $TSLA $NIO $XPEV $RIVN $KKR $AMD $ARM 

$AVGO $QCOM $MU $SMCI $INTU $INTC $TSM $PFE $MRK $JNJ $BMY $GSK $AZN $UNH $MRNA 

#size #value #momentum #profitability #assetgrowth #marketrisk #dividendyield #industry #revenuegrowth 

#fibonacci #shortreversal #longreversal #murphyrank #shortrange #longrange #issuance #accrual #macd 

AYA fintech network platform https://ayafintech.network/blog/our-proprietary-alpha-investment-model-outperforms-most-stock-market-benchmarks-february-2024/

Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024. - Blog - AYA fintech network platform provides proprietary alpha stock signals and personal finance tools for stock market investors.

Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500...

https://ayafintech.network/blog/our-proprietary-alpha-investment-model-outperforms-most-stock-market-benchmarks-february-2024/We

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