Here's Why JPMorgan Upgraded Alibaba, Other Chinese Stocks Months After Calling Them 'Uninvestable'

• JP Morgan Chase & Co (NYSE: JPM) upgraded multiple Chinese internet companies, including Alibaba Group Holding Limited (NYSE: BABA) and Tencent Holding Ltd (OTC: TCEHY), to Overweight, Bloomberg reports.

• JPM also upgraded shares of Meituan (OTC: MPNGY), NetEase, Inc (NASDAQ: NTES), and Pinduoduo Inc (NASDAQ: PDD).

• "Significant uncertainties facing the sector should begin to abate on the back of recent regulatory announcements," the firm added.

• Also Read: Alibaba And Other Chinese Stock Investors Remain Cautious Over China's Political Body Forum With Leading Firms

• The policy developments since their mid-March call have been supportive, diminishing risks related to regulation, delisting of American Depositary Receipts, and geopolitics.

• Investor caution regarding China's battered tech sector, with worries about persistent regulatory risks and Federal Reserve hikes adding pressure, drove the change in view.

• The provocative label helped erase some $200 billion from the U.S. and Asian markets and prompted one Chinese technology firm to downgrade JPMorgan's underwriting role on an initial public offering.

• JPM had caused a stir in the financial market by calling the sector "uninvestable" just two months back.

• Price Action: BABA shares traded lower by 0.98% at $87.13 in the premarket on the last check Monday.

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