Nevertheless, research firm Morningstar’s team of analysts covering these stocks remain upbeat on their prospects, joining similarly bullish views as indicated by recommendations of these stocks tracked by Bloomberg: All 22 analysts call Baidu a “buy” while all 27 calls for NetEase were a “buy” or equivalent. Meanwhile, 39 out of 41 analysts call Alibaba a “buy” with just two calling a “hold”.
China’s tech sector took a big beating last year as unfavourable regulatory policies were applied to rein them in. Now the same sector continues to experience volatility because of the war between Russia and Ukraine.
Alibaba Group Holdings, NetEase and Baidu are respective domain leaders in e-commerce, games and search engines respectively. As investors decamped for safer, less volatile sectors, their share prices have come off between a third and two thirds their peaks.
