On July 2nd, Guolonghui published a research report by Bocom International, which gave a leading rating to the mainland Internet industry. The report pointed out that in the second quarter of 2024, the Hong Kong stock connect increased its shareholdings in the software-related sector, with advertising and entertainment continuing to remain higher than the industry average, but holding in the e-commerce sector continued to decline. International institutional holdings are mainly concentrated in the life service, e-commerce and game industries, with a higher proportion than the industry average. They have significant differences in preferences compared with Hong Kong stock connect. They have held shares in entertainment and advertising companies rebounded, but still below the average. The sentiment of the mainland Internet sector fell back in June, and the China Internet ETF (KWEB) fell 7% monthly, compared with a 6% rise in the Nasdaq and a 2% fall in the Hang Seng. The bank pointed out that in July, it is bullish on New Oriental, PDD Holdings, Tencent, Netease, Ctrip, and Tongcheng, while Alibaba and JD.com are priced at 8 times P/E for 2024, and Baidu is priced at 5.7 times P/E, with limited downside.