China tech giants face final earnings check after upbeat results signal revival
CHINA’S tech behemoths will shed more light on their prospects next week after peers signalled that the industry is emerging from a volatile few years.
NetEase, Xiaomi, Meituan and Kuaishou Technology are among major players scheduled to announce their results. Earlier, Internet search leader Baidu said an advertising rebound led to a stronger-than-expected 10 per cent jump in its first-quarter revenue.
Meanwhile, Tencent’s revenue growth was at its fastest pace in more than a year, supported by China’s border reopening post-Covid, but sales from its advertising business missed forecasts.
These signal that there may be an uneven recovery among Chinese tech giants.
A return to growth would mark a revival for the tech stocks, which have been heavily discounted in the past two years amid regulatory crackdowns and stern Covid policies, Bloomberg Intelligence analyst Marvin Chen said.
The recent meeting between US and China officials is also easing geopolitical tensions as it sets the stage for a possible call between the two countries’ leaders.
Alibaba Group recently cleared a regulatory review by the US Securities and Exchange Commission for its fiscal 2022 annual report. The e-commerce leader said it will explore initial public offerings for two units and spin off its cloud arm after it posted sales that missed estimates.
Clouding the outlook, China’s latest economic data showed that recovery is losing momentum after an initial burst in consumer and business activity early in the year, prompting calls for more policy stimulus. BLOOMBERG
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