CMBI has issued a research report highlighting that the liquidity trend in China's stock market (A+H market) is improving, while the narrative around China's AI is becoming more positive.

Upbeat about the long- and medium-term investment value of the China-US internet and software sectors, the broker has recommended focusing on BABA-W (09988.HK)  +6.900 (+4.144%)    Short selling $5.50B; Ratio 23.811%   (BABA.US)      , BIDU-SW (09888.HK)  +2.400 (+1.859%)    Short selling $1.10B; Ratio 40.814%   (BIDU.US)      , and Microsoft (MSFT.US)      , whose cloud business growth is expected to remain strong and power stock price growth.

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In addition, TENCENT (00700.HK)  +16.000 (+2.484%)    Short selling $2.41B; Ratio 17.890%   , whose advertising and cloud business will maintain fast growth thanks to AI, and KUAISHOU-W (01024.HK)  +3.300 (+4.365%)    Short selling $575.37M; Ratio 18.791%   , whose Kling AI will improve the company's revenue potential and valuation with its positive progress in monetization, are worth attention as well.

CMBI has also suggested investors eye China-US software companies that have made substantial progress in AI monetization and still have room for valuation enhancement, such as Palo Alto Networks (PANW.US)      , Datadog (DDOG.US)      , and KINGDEE INT'L (00268.HK)  +0.790 (+4.850%)    Short selling $77.63M; Ratio 16.191%   .

The Chinese internet industry is rated as Outperform by CMBI.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-09-29 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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