JP Morgan Chase & Co (NYSE: JPM) upgraded multiple Chinese internet companies, including Alibaba Group Holding Limited (NYSE: BABA) and Tencent Holding Ltd (OTC: TCEHY), to Overweight, Bloomberg reports.
JPM also upgraded shares of Meituan (OTC: MPNGY), NetEase, Inc (NASDAQ: NTES), and Pinduoduo Inc (NASDAQ: PDD).
"Significant uncertainties facing the sector should begin to abate on the back of recent regulatory announcements," the firm added.
Also Read: Alibaba And Other Chinese Stock Investors Remain Cautious Over China's Political Body Forum With Leading Firms
The policy developments since their mid-March call have been supportive, diminishing risks related to regulation, delisting of American Depositary Receipts, and geopolitics.
Investor caution regarding China's battered tech sector, with worries about persistent regulatory risks and Federal Reserve hikes adding pressure, drove the change in view.
The provocative label helped erase some $200 billion from the U.S. and Asian markets and prompted one Chinese technology firm to downgrade JPMorgan's underwriting role on an initial public offering.
JPM had caused a stir in the financial market by calling the sector "uninvestable" just two months back.
Price Action: BABA shares traded lower by 0.98% at $87.13 in the premarket on the last check Monday.
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