Shares in major mainland new economy stocks fell today after China launched an antitrust investigation into Alibaba Group (9988), while some analysts expect the sector to continue to be under pressure given policy uncertainties. This is definitely not an appropriate time for bottom fishing, despite Alibaba falling by more than 8 percent today, he said. Equity-linked notes investors might be forced to sell their holdings after Alibaba's share slump, adding more pressure to its share performance, Wen added. But smartphone maker Xiaomi (1810), which is running its business in a competitive market, might outperform the market, as new economy funds and investors are expected to adjust their asset allocation, Wen said. Wen suggested that investors offload part of shares in new economy sectors to shift to companies that may benefit from the economic recovery after the pandemic.

Source: The Standard December 24, 2020 10:43 UTC