EUR 278.67 For Business Accounts Only

WB: Slower Than Expected Economic Recovery In China; Neutral On WB’s 3Q23 Performance

WB will report 3Q23 results on November 9^th before the markets open with a 6am ET conference call. We are neutral on WB’s 3Q23 performance. The slower than expected economic recovery has not been able to boost people’s confidence in their economic future. The central government’s economic stimulus did not officially come until August 2023 as decided by the Politburo Meeting on Economy on July 24^th. In the last 10 consecutive months, the central bank has been conducting aggressive MLF (medium-term lending facility) operations. In September alone, MLF was RMB591B. We believe the abundance of liquidity is going to be reflected in China’s economy sooner or later. As such, Weibo is likely to resume growth along with the recovery in China’s economy. However, one positive factor for WB’s business were two international sporting events including the 31^st Summer World University Games held in Chengdu from July 28^th to August 8^th and the Hangzhou Asian Games held from September 23^rd to October 8^th.