Country Daily
China Automobile Sector Weekly / China Internet Sector
Analyst
Key Indices
Top Stories
Sector Update | Automobile Weekly
BYD and Geely far outperformed peers in 2Q26 due to new models and exports. For 2H26, their earnings will be continuously driven by premiumisation, globalisation, and flattening lithium carbonate prices. 2Q26 results of auto parts companies diverged, with ADAS and AI plays outperforming conventional ones. The flattening of lithium carbonate prices reduces the upside for battery materials producers in 2H26. Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, and Minth. Top SELL: Li Auto.
Sector Update | Internet
AI/AI cloud remained the bright spot in 2Q26, with Alibaba and Baidu delivering 45%/50% respective yoy growths in AI cloud, while Tencent reported healthy cloud growth on AI demand. E-commerce remained soft, with only selective signs of stabilisation. Gaming was resilient and largely macro-insensitive. Meanwhile, travel demand softened but the 2H outlook has improved from earlier fears. Maintain MARKET WEIGHT. Top BUYs: Alibaba, TCOM, NetEase and Z.ai.
Top Stories
Sector Update | Automobile Weekly
BYD and Geely far outperformed peers in 2Q26 due to new models and exports. For 2H26, their earnings will be continuously driven by premiumisation, globalisation, and flattening lithium carbonate prices. 2Q26 results of auto parts companies diverged, with ADAS and AI plays outperforming conventional ones. The flattening of lithium carbonate prices reduces the upside for battery materials producers in 2H26. Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, and Minth. Top SELL: Li Auto.
Sector Update | Internet
AI/AI cloud remained the bright spot in 2Q26, with Alibaba and Baidu delivering 45%/50% respective yoy growths in AI cloud, while Tencent reported healthy cloud growth on AI demand. E-commerce remained soft, with only selective signs of stabilisation. Gaming was resilient and largely macro-insensitive. Meanwhile, travel demand softened but the 2H outlook has improved from earlier fears. Maintain MARKET WEIGHT. Top BUYs: Alibaba, TCOM, NetEase and Z.ai.
Analyst
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Related articles
3 Sept 2026
Greater China Strategy-Alpha Picks September Conviction Calls / China Internet AI Capex
2 Sept 2026
Macau Gaming / Pateo Connect Technology / Sino Land / The United Laboratories International
24 Aug 2026
China Property Management / Futu Holding / KE Holdings / Lens Technology / Li Ning / Ping An Insurance / ZTE Corporation
Our latest research
3 Sept 2026
Greater China Strategy-Alpha Picks September Conviction Calls / China Internet AI Capex
2 Sept 2026
Macau Gaming / Pateo Connect Technology / Sino Land / The United Laboratories International
1 Sept 2026