Golden Finance News | The internet sector is showing strong performance, jd.com (09618) up 3.86%, Meituan (03690) up 3.73%, baidu (09888) up 3.56%, netease (09999) up 3.15%, alibaba (09988) up 2.17%.

On the news front, UBS Group's Investment Banking China Internet Research Director Fang Jincang stated that competition in the mainland internet industry has eased, platforms are moving towards cooperation, which will be beneficial for increasing monetization rates, thereby driving revenue growth and profit margin improvement. Currently, the mainland internet industry's Price/Earnings to Growth ratio (PEG) is around 1.1 times, at historical average levels. However, considering factors such as the implementation of economic stimulus policies in the mainland, easing competition, etc., it is believed that the internet sector's valuation is still undervalued, with further upside potential. A PEG increase to 1.3 times would be a reasonable expectation.