China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>BABA：SME merchants benefited from new Taobao rules ( + )</li>
<li>LI/NIO/XPEV: The cumulative large deposit order volume of Wenjie’s new M7 has exceeded 50,000 units(-)</li>
<li>Gaming Industry: August Market Sustains Ongoing Recovery with Impressive 46% YoY Growth in Domestic Market(+)</li>
</ul>


BABA：SME merchants benefited from new Taobao rules ( + )
LI/NIO/XPEV: The cumulative large deposit order volume of Wenjie’s new M7 has exceeded 50,000 units(-)
Gaming Industry: August Market Sustains Ongoing Recovery with Impressive 46% YoY Growth in Domestic Market(+)


China TMT Update-Oct.10-Baba/LI/NIO/XPEV/Tencent/NetEase-Huawei Wenjie's New M7/New Taobao Rules

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Equity Bottom-Up

<ul>
<li>After a heavy decline in ownership between 2016 and 2020, active Asia Ex-Japan managers are re-engaging with Baidu Inc.</li>
<li>Ownership levels are at 4-year highs, with Baidu one of the key beneficiaries of manager rotation this year.</li>
<li>Baidu is the 3rd largest holding in the Communication Services sector, but there a plenty of funds with a history of ownership who remain on the sidelines for now.</li>
</ul>


After a heavy decline in ownership between 2016 and 2020, active Asia Ex-Japan managers are re-engaging with Baidu Inc.
Ownership levels are at 4-year highs, with Baidu one of the key beneficiaries of manager rotation this year.
Baidu is the 3rd largest holding in the Communication Services sector, but there a plenty of funds with a history of ownership who remain on the sidelines for now.


<ul>
<li>HK 700/NTES US/HK 02400: NPPA has released the game code approvals for September, but Tencent and NetEase is not on the list (-)/(-)/(+).   </li>
<li>ZTO/002352.CH/BABA/PDD: Parcel volume remains strong, grew 23% YoY last week (+)</li>
<li>U: Unity Issues Formal Apology and Adjusts Previous Runtime Fee Plans (-)</li>
</ul>


HK 700/NTES US/HK 02400: NPPA has released the game code approvals for September, but Tencent and NetEase is not on the list (-)/(-)/(+).   
ZTO/002352.CH/BABA/PDD: Parcel volume remains strong, grew 23% YoY last week (+)
U: Unity Issues Formal Apology and Adjusts Previous Runtime Fee Plans (-)


China TMT Update-700.HK/NTES.US.2400.HK.ZTO/2352/BABA/PDD/U-Game Code/Parcel Volume Remains Strong

<ul>
<li>NTES US/HK 700: NetEase Reveals More Information About Future Game Pipeline at Tokyo Game Show (+)/(-)</li>
<li>3690.HK/TCOM: Meituan publishes early consumption data for the upcoming “Golden Week” Holiday (+)</li>
<li>Futu Holdings : Futu Japan launched U.S. stock trading service</li>
</ul>


NTES US/HK 700: NetEase Reveals More Information About Future Game Pipeline at Tokyo Game Show (+)/(-)
3690.HK/TCOM: Meituan publishes early consumption data for the upcoming “Golden Week” Holiday (+)
Futu Holdings : Futu Japan launched U.S. stock trading service


China TMT Update-NTES/HK700/3690.HK/FUTU- NetEase Pipeline In Tokyo Game Show/Golden Week/Futu Japan

<ul>
<li>Blue Lotus expects Huawei’s smartphone shipment market share to grow 5ppt in 2024, of which 2ppt from Apple and 1.5ppt from Honor;</li>
<li>The impacts are mainly two: (1) Huawei Appstore’s unique revenue share for games and apps, (2) Opportunity to recommend new games and apps through preinstallation;</li>
<li>We see the biggest positive impact on subscription-based video apps and the biggest negative impact on mobile games. We reiterate our Top Pick in iQIYI.</li>
</ul>


Blue Lotus expects Huawei’s smartphone shipment market share to grow 5ppt in 2024, of which 2ppt from Apple and 1.5ppt from Honor;
The impacts are mainly two: (1) Huawei Appstore’s unique revenue share for games and apps, (2) Opportunity to recommend new games and apps through preinstallation;
We see the biggest positive impact on subscription-based video apps and the biggest negative impact on mobile games. We reiterate our Top Pick in iQIYI.


[Blue Lotus Entertainment Sector Update]: What Change Can Mate 60 Bring to Games and Apps

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

China TMT Update-Oct.10-Baba/LI/NIO/XPEV/Tencent/NetEase-Huawei Wenjie's New M7/New Taobao Rules

SME merchants benefited from new Taobao rules/The cumulative large deposit order volume of Wenjie’s new M7 has exceeded 50,000 units(-)/ August...

Blue Lotus Research Institute

Baidu: Back in the Mix

After a heavy decline in ownership between 2016 and 2020, active Asia Ex-Japan managers are re-engaging with Baidu Inc..

Steven Holden

China TMT Update-700.HK/NTES.US.2400.HK.ZTO/2352/BABA/PDD/U-Game Code/Parcel Volume Remains Strong

NPPA has released the game code approvals for September, but Tencent and NetEase is not on the list. Parcel volume remains strong; U: Unity Adjusts...

Blue Lotus Research Institute

China TMT Update-NTES/HK700/3690.HK/FUTU- NetEase Pipeline In Tokyo Game Show/Golden Week/Futu Japan

NetEase Reveals More Information About Future Game Pipeline at Tokyo Game Show; Meituan publishes data for the “Golden Week” Holiday;Futu Holdings...

Blue Lotus Research Institute

[Blue Lotus Entertainment Sector Update]: What Change Can Mate 60 Bring to Games and Apps

We see the biggest positive impact on subscription-based video apps and the biggest negative impact on mobile games. We reiterate our Top Pick in...

Blue Lotus Research Institute

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