Since mid-May, short-selling activity in major Hong Kong-listed tech stocks—including Tencent (00700.HK), Alibaba (09988.HK), and Xiaomi (01810.HK)—has declined significantly, signaling reduced bearish sentiment. This shift likely reflects improving market confidence, supported by stabilizing regulatory conditions and strong corporate fundamentals. However, Meituan (03690.HK) has bucked the trend, with short interest expanding amid growing concerns over competition and profitability.
The divergence suggests investors remain cautious about Meituan’s outlook, particularly as rivals like Douyin intensify competition in food delivery and local services. Rising operational costs and macroeconomic pressures on consumer spending may also be contributing to the increased short bets. In contrast, other tech giants have benefited from earnings resilience, share buybacks, and easing regulatory risks, leading to a retreat in bearish positions.
Going forward, Meituan’s performance will be closely watched, especially its upcoming earnings report and execution in fending off competitive threats. If short interest continues to climb, the stock could face heightened volatility. Meanwhile, the broader easing of short pressure in peers like Tencent and Alibaba may indicate a gradual recovery in investor confidence for China’s tech sector.
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