HSBC Research's report indicates that the new stock selection framework evaluates the quality of profit growth, valuation discrepancies, and shareholder returns in the Chinese internet industry. Despite the weak macroeconomy, opportunities are still seen in Meituan (03690.HK), Tencent (00700.HK), and Alibaba (09988.HK), all rated as "buy". In addition, after updating discounts and forecasts, the rating for Baidu (BIDU.US) was downgraded from "buy" to "hold", and douyu (DOYU.US) was downgraded from "hold" to "shareholding".

The bank believes that Meituan's profit growth remains resilient under macro challenges. Tencent's revenue mix moving to high-margin businesses, disciplined cost control, and commitment to developing TSR should drive its profit growth and stock price resilience. Alibaba, due to customer management income realization and profit recovery from narrowing losses in non-core businesses, is ready for reassessment. The steady cloud profitability, driven by the growth of ai and public cloud, is another driving factor, but weak consumer sentiment remains a major concern.