UBS's Fang Jincong Says China Internet Stocks Down About 20% This Year

UBS China internet research head Fang Jincong said mainland internet stocks have fallen about 20% year to date, and the clear capital rotation and rebound seen in July mainly reflected investors moving their allocations from underweight back to neutral rather than a bullish view on near-term share performance, according to Ming Pao. He said investors remain cautious on internet companies in the second half because weak macro consumption is directly hurting revenue from e-commerce, advertising and local services, while heavy investment in artificial intelligence is also pressuring cash flow.