Vip.Com Was Downgraded By Da Mo And Shares Fell 7%. Jingdong Laughed.

Over the past few months, China's stock market has seen a significant rise in the US stock market, with some investors in China.

The company has renewed interest.

Recently, US investment bank Morgan Stanley analyst raised

and

Shang city stock rating, at the same time lowered the only product rating.

According to reports from SeekingAlpha, TheStreet and several other American financial investment websites, Morgan Stanley report pointed out that although the recent stock prices of Chinese listed companies have risen, investors in the US should still be cautious in investing, choose listed companies and enter time points.

This report also recommends that investors focus on China's four Internet Co with the largest market value, namely Tencent, Baidu, Alibaba and Ctrip.

Morgan Stanley's three Internet analysts, Robert Lin, Amanda Chen and Claire Cao, say that the overall evaluation of China's Internet industry has been reduced from "attractive" to "neutral" in recent years as stock prices have risen and market value has changed.

The report's rating on China's Twitter social network, Sina micro-blog and Jingdong mall, rose from "neutral" to "overweight".

For Sina micro-blog, Morgan Stanley reports that the company's profit margin has been rising for four consecutive quarters, and next year, driven by online video advertising and social business advertising, Sina micro-blog's profit margins will steadily rise.

For Jingdong mall, the report pointed out that partnership between Jingdong mall and Chinese Internet giant Tencent has been established. Jingdong is benefiting from this cooperation. Besides, the online advertising revenue of the mall has also increased rapidly, which is expected to exceed the expected figure of Morgan Stanley.

For Jingdong mall's rival vip.com, Morgan Stanley reduced the stock rating from "neutral" to "reduction".

Analysts in the company say that the e-commerce market in China is showing a trend of centralization, which will bring huge competition pressure to small businesses. This is also why the vip.com rating has been downgraded.

According to the report, vip.com is still a good company, which has brought value to the merchants who have settled in. However, unlike vip.com's own expectations, the competition for e-commerce in China is becoming more and more intense. Vip.com will also face challenges.

Morgan Stanley analysts believe that in 2016, vip.com should increase investment in marketing and gain higher user growth, which will also reduce the company's profit margin.

As for the overall decline in the overall evaluation of China's Internet industry, the company believes that capital is overvalued at present.

Morgan Stanley suggests investors continue to hold shares of the four big Internet companies, and believes that the four companies will still enjoy strong profits growth next year.

The report pointed out that these four large companies themselves have positive catalyst factors, which can withstand the negative effects of China's domestic macroeconomic slowdown.

Among them, the e-commerce giant Alibaba group will diversify the services provided to consumers, which will further increase revenue generation and liquidity.

Morgan Stanley said China's tourism market is still growing, and Ctrip will benefit from it.

In addition, China's online advertising market continues to show rapid growth. Tencent Inc, which provides various services through the Internet, will continue to benefit.

Morgan Stanley said Baidu Inc, the search engine, is now using the Internet to provide offline services for more physical stores, which will become a new driving force for Baidu's revenue growth.

The report also had an impact on the stock price of China's concept stocks.

Thursday, Sina micro-blog

A sharp increase of 4.87%, closing price of 19.82 U.S. dollars, the company's market value has exceeded 4 billion dollars.

Jingdong mall's share price rose more than 2%, but it fell later, closing at $32.38 on the day, a slight increase of 0.48%.

Vip.com's share price was hit hard, when it fell 6.98%, closing at 16.26 dollars.

At present, vip.com's overall market value is US $9 billion 200 million, and its share price is at the lowest level since being listed.