After China ended its strict Covid Zero program in late October 2022, Chinese technology stocks rallied sharply on the prospects of strong earnings as the country reopened from the pandemic. However, after peaking in early January, Chinese tech stocks have retreated as the Chinese economic recovery loses steam, and upcoming earnings results are unlikely to boost market sentiment.
On Thursday, JD.com (JD) will begin the quarterly earnings season for Chinese technology stocks, and Bloomberg data shows analysts are projecting less than +1% revenue growth for Q1, which would be the company’s slowest pace on record. Also, Alibaba Group Holding Ltd (BABA) will likely report sales increased by less than +3%, and Tencent Holdings (TCEHY) may also report lackluster sales results when they report earnings results next week.
