HSBC Research Recommends MEITUAN-W, TENCENT, BABA-W; Downgrades Baidu to Hold

HSBC Global Research has highlighted earnings growth quality and valuation opportunities in China's internet industry, maintaining a Buy rating for $MEITUAN-W (03690.HK)$ , $TENCENT (00700.HK)$ , and $BABA-W (09988.HK)$ . Despite macroeconomic challenges, Meituan's earnings remain strong, while Tencent’s revenue shift towards higher-margin sectors and cost discipline boost growth. Alibaba is expected to benefit from CMR monetization and cloud profitability, driven by AI advancements.

$BIDU-SW (09888.HK)$ , however, was downgraded to Hold, with $DouYu (DOYU.US)$ dropping further to Underweight, reflecting concerns about growth outlooks in these companies.