China Internet Weekly (25Nov19): PDD Plunged by 23% After Short Recommendation in Last Weekly

While researching Chinese Internet companies, we frequently come across news that merits being highlighted to investors, however, it is not big enough to warrant a research note. In our inaugural "Last Week on China Internet", we have tried to summarize the weekly news flow. We plan to publish this on a test basis, thus, if you have any feedback positive/negative please do let us know.

• Pinduoduo (PDD US) plunged by 23% as we expected in our last Weekly.
• Alibaba Group Holding (BABA US) owns a logistics platform, Cainiao, and is a major shareholder of BEST Inc (BEST US), but BEST began to provide service via Xiaomi Corp (1810 HK)’s logistics platform, MI Express.
• The private company ByteDance, owner of Tik Tok, is taking time-on-site and advertising budgets from Tencent Holdings (700 HK) and online TV companies such as iQIYI Inc (IQ US).
• Momo Inc (MOMO US), the online dating company, expanded to four countries.
  

Ratings of our coverage in China:

• Buy: Alibaba (BABA), Tencent (700 HK), JD.com (JD) Meituan (3690), NetEase (NTES), TAL Education (TAL), New Oriental (EDU).
• Hold: Autohome (HTHM), 58.com (WUBA)
• Sell: Pinduoduo (PDD), Tencent Music (TME), Baidu (BIDU), Weibo (WB)