Alibaba, Meituan are top picks at Daiwa in sector upgrade as internet stocks to benefit most from China stimulus

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Daiwa Capital Markets analysts are betting that Chinese internet stocks will benefit the most from policy stimulus and a clearer picture of the direction of earnings in the second half of the year.

The so-called platform economy is one of the most promising areas for policymakers to boost growth, given that other possibilities such as infrastructure and property stimulus are restricted by local governments’ strained fiscal budgets, said Daiwa Research analyst Patrick Pan, in a report dated July 22.