BOCOM International released a research report stating that within June, the sentiment of China's internet sector declined. The China Internet ETF (KWEB) fell by 7% compared to the 6% increase of the Nasdaq and 2% decrease of the Hang Seng Index. In July, there is a bullish outlook for New Oriental-S (09901), PDD Holdings, Tencent (00700), Netease-S (09999), Ctrip-S (09961), Tongchengtravel (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.