In a March equity research report, JPMorgan mistakenly described Chinese Internet stocks as ‘uninvestable,’ which was later adjusted to ‘unattractive.’ Bloomberg reported that this accident has sunk the U.S. and Asian stock markets and blown off about 200 billion dollars.

Losses spiraled after the bank inappropriately downgraded 28 Chinese tech stocks, including Alibaba Group Holding, Bilibili, and Weibo, as ‘uninvestable.’

The bank’s analysts and supervisors said it wasn’t the best way to describe the stocks. As a result, their editor asked that the term be removed from 28 research notes before publishing in March. However, it was not wholly omitted from the internet. Readers were able to read it from 4 sources, including JD.com.

According to the report, “As risk management becomes the most important consideration among global investors in relation to their China investment strategy, as they price in China’s geopolitical risks, we view China Internet as uninvestable on a six-12-month view with a binary share price outlook.”

JPMorgan spokesperson told Bloomberg, “We stand by our published research and the analyst’s independent analysis of the sector. … A few subjective terms used interchangeably doesn’t change that.”

Sign up to receive our latest news!

By submitting this form, I agree to the terms.