1036 GMT - Citi has opened a 30-day downside catalyst watch on Temu owner PDD as it assesses the possible impact that potentially harsher regulatory scrutiny would have on the company's business. Citi's Alicia Yap reckons that the stock is likely to see further downside if expectations solidity that Chinese regulators may take a tougher stance on the company. Share price weakness in the past two weeks may have partially reflected potential deepening regulatory scrutiny, and any formal investigation launch or voluntary announcement from the company to acknowledge a probe--similar to Trip.com's announcement last week--could trigger a further sell-off, the analyst adds. ADRs last closed down 11%. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

January 20, 2026 05:36 ET (10:36 GMT)

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