On July 18th, Nomura's Director of China Internet and New Media Research, Shi Jialong, pointed out that despite the overall market volatility, the China internet sector has shown reasonable growth, and it is expected that Tencent will continue to achieve double-digit profit growth in the second quarter. Moreover, he found that most Chinese network technology stocks have a large amount of net cash on their balance sheets and have the ability to reward shareholders through dividends and buybacks. Since the beginning of the year, Alibaba has launched online shopping subsidies to compete with rivals such as PDD. Shi Jialong pointed out that these subsidies have helped Alibaba regain some of the lost market share and are expected to be reflected in the next performance report. He also predicts that the online shopping subsidy war in mainland China will intensify in the second half of the year and become a market focus. Another technology stock market focus is when China's artificial intelligence (AI) super application will be born. Shi Jialong pointed out that many Chinese technology companies have launched large language models similar to ChatGPT, but there are no exciting AI applications for commercial or personal users, forcing these technology companies to lower AI model fees and launch price wars to attract customers. In addition, when asked whether internet regulation in mainland China has ended, Shi Jialong pointed out that from official statements, the country strongly supports the internet industry, which helps to solve employment pressure related to online shopping, such as courier positions, and is bullish for consumer spending. In addition, the development of large-scale AI models is also positive for the industry's growth.