BITENCT@EC2601A(25164.HK)

Goldman Sachs' View on China's Internet in 2026: The Battle for AI Super Entry Has Fully Begun, with Three Major Themes Locking in Alpha Opportunities

Goldman Sachs believes that ByteDance's comprehensive breakthroughs in AI, e-commerce, and local services are forcing giants like Alibaba and Tencent to increase their investment in To-C AI, engaging in direct competition around the "AI super entrance," while fiercely defending their core markets. The industry logic has shifted from a broad rise to differentiation, with profit delivery, AI applications, overseas expansion, and shareholder returns becoming the new main lines. Valuations still hold advantages, but alpha opportunities are concentrated in companies that can convert AI into EPS

Tencent Holdings and Fidelity International are reportedly planning to invest in Mingming Hen Mang's IPO. (Bloomberg)

Morgan Stanley expects a brighter outlook for Chinese tech stocks this year, with Tencent as the industry's top pick

Morgan Stanley released a outlook on Chinese tech stocks, believing that the development prospects of AI in China are bright, mainly driven by supply and demand. It recommends Tencent, Alibaba, Pinduoduo, and Tencent Music as overweight, while JD.com, Bilibili, Kuaishou, and Baidu as underweight. The overseas market has become a new growth engine, with overseas revenue expected to account for over 10% by 2025. However, caution is needed regarding weak domestic consumption, intense competition, and regulatory risks

Hong Kong Stock Market Closing | Hang Seng Index fell 1.05%, technology and retail sectors under pressure, QUNABOX GROUP surged 38.78%

The Hong Kong stock market closed lower today, with all three major indices retreating. The Hang Seng Index fell by 1.05%, and the Hang Seng Tech Index dropped by 1.24%. The retail and internet content sectors led the decline, with ongoing pressure from technology and regulation. Alibaba fell by 3.49%, Tencent Holdings dropped by 1.21%, and Bilibili saw a decline of 6.85%. At the same time, popular stocks such as QUNABOX GROUP and Prosperity Holdings surged significantly, showing clear sector differentiation. Overall, market funds are becoming cautious, with an increased wait-and-see atmosphere and a contraction in investors' risk appetite

Goldman Sachs: Tencent, NetEase, and Kuaishou are the core of mainland gaming and entertainment stocks

Goldman Sachs report indicates that Chinese gaming and entertainment stocks will rise by 50% to 80% by 2025, continuing to perform strongly in early 2026. The increase is primarily driven by valuation expansion and earnings per share growth. Goldman Sachs prefers companies with new growth potential, especially in the context of intensified competition. The report emphasizes concerns about competition from ByteDance, but significant differences exist across different sectors. The acceleration of overseas market expansion and AI applications enhance efficiency and revenue. Core buy shares include Tencent, NetEase, KUAISHOU, etc