Tencent (700 HK) & NetEase (NTES US) US
Technology
While China’s e-commerce sector is mired in subsidy fuelled competition, Arete argues this is outweighed by strength in gaming and online entertainment. Record approvals and blockbuster titles underpin upgrades for Tencent and NetEase, while Alibaba shows early signs of a turnaround in quick commerce and cloud. The report also examines mounting cost pressures at Meituan, the lack of near term catalysts at Xiaomi and SEA, and the structural headwinds still facing JD and Baidu.
Edition: 219
- 05 September, 2025
India China Ties Warm Boosting Chinese Firms
India and China are witnessing their most significant thaw in relations since 2020, with border trade, flights and visas reopening. Yet India’s dependence on Chinese imports, especially in pharmaceuticals and electronics, leaves its deficit at record highs. The revived engagement appears to offer greater benefits to Chinese companies for now, with names like Xiaomi, Alibaba, BYD and Tencent best positioned, while Indian groups such as Cipla, Dixon and Adani seek to leverage selective partnerships.
Edition: 219
- 05 September, 2025
Technology
The Apple Killer - Xiaomi is eating up global market share in smart phones, tablets, home electronics and now cars. Erik@YWR feels like many investors are living in a bubble. They don’t spend time outside the US and Western Europe. They don’t go to Africa, the Middle East, or South Asia and see how brands like Xiaomi are gobbling up the world markets. Brands like AAPL and Western car companies are getting boxed into a smaller and smaller market. If the dam breaks and Xiaomi gets momentum in Europe it will do serious damage to AAPL. You can see the network effects it is creating. Make the phone, the tablet, the home appliances and the car, and have it all interconnected with its AI system.
Edition: 208
- 04 April, 2025
Xi's Champions: A closer look at fund positioning
Following President Xi’s recent meeting with select private sector leaders, Steven Holden breaks down the percentage of funds invested in each stock, segmented by fund type, from broad-based Global and GEM funds to specialist China strategies (MSCI and A-Shares). As expected, ownership increases as we move from global strategies to China-focused funds. Beyond Tencent, Alibaba, BYD, CATL, Meituan and Xiaomi, representation in non-China funds is limited. Some names, such as Shiyuan and Qi An, are almost entirely absent from all fund groups. Will Semiconductor and Muyuan Foods stand out as the biggest discrepancies - despite decent representation in specialist China funds, they barely register in Global, GEM, or Asia Ex-Japan allocations.
Edition: 207
- 21 March, 2025
Technology
Production and deliveries tracking ahead of expectations - Blue Lotus sees SU7’s success stemming from its attractive design, class leading range / acceleration and compelling price point. SU7 gross margin guide suggests pricing strategy is sustainable for Xiaomi’s next vehicle, an SUV launching in early-2025. As a result, Blue Lotus upgrades the stock to Buy. They increase their EV profitability estimates and expect market share to expand. They raise their unit volume estimates for 2024/2025/2026 by 48%/14%/14% to 99k/240k/450k, respectively.
Edition: 185
- 03 May, 2024
Technology
Xiaomi's AI model is mainly committed to the model of lightweight parameters, and mainly serves the needs of the Xiaomi Group and internal companies, while in the field of mobile phones, IoT products and automobiles will pay more attention to the way of offline end deployment. At present, millet has carried out internal testing of some large models on the voice assistant on the mobile phone side, and carried out internal testing of some customers in some application scenarios, but has not yet carried out large-scale public testing. It is expected that there will be some differences in the size of the number of parameters of the model deployed by each mobile phone factory on the mobile phone side, but in practice, due to the existence of hardware limitations, the gap between the number of parameter sizes may not be very large.
Edition: 168
- 01 September, 2023
The China Rotation: Allocations hit 4-year lows
Allocations in China & HK equities among active EM investors have plummeted 10%+ in the space of 18-months (India, Taiwan and Mexico have been the biggest beneficiaries) - on a sector level, China Industrials and Consumer Staples are the overweights, with managers rotating into Financials and away from Consumer Discretionary. On a stock level, Alibaba remains a core holding; out-of-benchmark AIA Group and Midea Group are popular, and for Value managers, China Mobile and CNOOC are key overweights. Active managers have stayed away from both NIO and Xiaomi, so pressure to invest on the grounds of benchmark tolerance should be disregarded.
Edition: 136
- 27 May, 2022