According to the research report published by Netease, within June, the mainland internet sector sentiment has fallen back, the Chinese concept technology sector index(KWEB) has fallen by 7% on a month-on-month basis, compared with the NASDAQ Index, which rose by 6%, and the Hang Seng Index, which fell by 2%. In July, we are bullish on New Oriental-S(09901), PDD Holdings, Tencent(00700), Netease-S(09999), Ctrip.com-S(09961), Tongcheng Travel(00780), Alibaba-SW(09988) and JD.com-SW(09618), with limited downside.

According to the report, the mainland internet industry is rated as a leader. In Q2 2024, institutional holdings in the software-related sector of the Hong Kong Stock Connect have continued to increase, and advertising and entertainment have remained higher than the industry average, but holdings in the e-commerce sector have continued to decline. International institutional investors are mainly concentrated in the life service, e-commerce, and gaming industries, with shareholding ratios higher than the industry average. There are significant differences in preferences from the Hong Kong Stock Connect, with holdings in entertainment and advertising companies rebounding, but still below average.