Pinduoduo (PDD) Gains Amid Improved Sentiment Towards Chinese Internet Stocks

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Feb 19, 2025

Pinduoduo (PDD, Financial) saw a 1% increase in pre-market trading, reaching $129.74. Recent discussions with over 60 investors in the U.S. and Canada indicate a more positive sentiment towards Chinese internet companies compared to last year. This optimism is driven by easing U.S.-China trade tensions and promising developments in DeepSeek.

While global investors maintain a cautious approach to investing in China, emerging market investors appear ready to explore opportunities, with some actively evaluating increased allocations. Companies like Tencent, Sea Limited, Alibaba, and Pinduoduo are frequently mentioned in these discussions.

Daiwa maintains a positive outlook on the Chinese internet sector, with top picks including Tencent, Trip.com, Meituan, Pinduoduo, and Sea Limited.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.