Bernstein is looking at Chinese internet technology stocks, like in the oppressed era of Covid-19. “I think the “extreme fade sentiment” mantra still applies because of all the righteous surprises about geopolitics and trade headwinds,” Bernstein China’s internet analyst Robinzoo and his team said in a report on April 14th. “Some of the other conditions that marked the previous bottom of China’s internet sector now apply again,” they said, noting that multiples of ratings have almost fallen to the lows seen in 2021-2023. Government restrictions on Chinese internet companies and the 2022 blockade of Shanghai have been heavy on investors’ sentiment. However, Hong Kong’s Hangsen Index defeated its four-year winning streak in 2024 and got off to a strong start in 2025 as Beijing has bolstered its stimulus announcement in recent months, and particularly with the emergence of Deepshek’s artificial intelligence breakthroughs, showing more private sector support. “Looking at the global market, I can’t help but feel that the state’s state is mildly associated with China in 2021,” analysts at Bernstein said, saying that China’s current policy stance now appears to be more predictable, in contrast. “In us [China internet] Coverage, video games feel like the sector most isolated from trade and macro headwinds, but digital ads may even benefit from merchants leading up to domestic sales,” Bernstein’s report highlights two sweet spots for social media and the huge Tencent of gaming. Hang Seng has now reached nearly 7% this year as the market closed this year. Stocks may benefit from generation AI. Bernstein also rates Chinese gaming company Netease Overweight, valuing its price target of $125, or a rise of nearly 27% since the end of Thursday. The stocks are listed in both the US and Hong Kong. China approved 362 new games in the first quarter, nearly recovering to 2020 levels, Bernstein analysis showed. Beijing has temporarily suspended approval for new games while attempting to restrict minors from playing games for hours each week. Digital advertising revenues for major Chinese companies have increased at least 10% year-on-year in the last quarter, Bernstein analysts said. Especially for Tencent, they expect that high US tariffs will allow them to benefit from Chinese merchants who need more competition in the domestic market. “Channel checks with advertisers point to improvements in AI and AD technology clearly driving in advertising. [return on investment] Bernstein analysts point out that beyond Tencent’s properties, they have increased the Chinese company’s Miaosi ad creation platform and the ads for short videos hosted within Tencent’s ubiquitous Wechat social media and messaging apps. Meanwhile, we have begun to cut down on our targets. This remained robust, referring to the 20% mid-term, which will be China’s official target and approximately 5% targets. [gross transaction value] Bernstein analysts spoke about the food delivery giant listed in Hong Kong. The company has a price target of overweight in stocks or 46.5% from the end of Thursday. Bernstein has only hong hong hong on fore shear shear on Alibaba and jd.com. China’s Internet Stocks without Hong Kong listings are Chinese companies listed in the US. “It’s all on the table,” Bescent said. They expect PDD may already be seeking some kind of contract to mitigate the business impact of increasing US restrictions. – CNBC’s Michael Bloom contributed to this report.
