11/05/2022 07:07
JP Morgan mistakenly wrote in a statement that shares of Chinese Internet companies are “non-investable,” resulting in a sell-off of approximately $ 200 billion in US and Asian-listed industry stocks. This is what a Bloomberg article reports, specifying that the publication of the term “non-investable” was made by mistake.
The editorial staff of the American banking giant, responsible for editing the reports of the research division of JP Morgan, had in fact requested that the word be removed from the 28 notes written by the analyst on technology stocks Alex Yao and his team, before that the reports were published on March 14th.
The term has been removed from all footnotes (in some cases replaced with the word “unappetizing”, apart from four, including one in JD: Com: “With risk management becoming the most important factor to consider among global investors regarding their investment strategy in China, at a time when they are pricing the geopolitical risks of China, we consider China Internet as non-investable over a period of 6-12 months, with a binary outlook on the share price “, reads the note .
Indiscretions reported by Bloomberg revealed that JP Morgan, after an internal investigation, came to the conclusion that the publication of the term took place even after editorial staff, analysts and supervisors had all agreed that the adjective was not the best to be adopted in the preparation of the analyzes. It is true that Yao’s team had decided to be more cautious about Chinese Internet companies, but the outlook on the trend in the share prices of at least 0 companies by the end of the year suggested that the sector was not entirely. ‘ not investable ‘.
That said, China’s fury has hit the bank regardless of its mistake.
JP Morgan was removed from her position as principal underwriter bank for the Hong Kong Stock Exchange IPO of Kingsoft Cloud Holdings after Yao’s team cut the Wall Street-listed group’s share price target by half. as part of a roundup of downgrades launched in March. JP Morgan remains sponsor of the IPO, but no longer holds the highest position among the underwriter banks, which has been entrusted to UBS Group AG and China International Capital Corp