Ge Long Hui·2026-02-05 03:24Core Viewpoint - The report from Citi indicates that the Chinese internet industry is expected to perform strongly by 2025, driven by AI trends led by DeepSeek, with growth anticipated to continue into 2026, particularly in the competitive landscape of AI and generative video applications [1] Industry Summary - The competition between China and the United States in the fields of AI models, applications, cloud services, and autonomous driving (Robotaxi) is expected to intensify [1] - Despite geopolitical challenges, the Chinese gaming and e-commerce sectors are experiencing rapid growth in overseas markets, although there is a cautious outlook for the domestic e-commerce sector [1] Investment Strategy - Citi prefers sectors related to AI, gaming, and health, believing that China is poised to lead in the global application of AI [1] - Six preferred stocks for 2026 have been identified, including Tencent, Xiaomi, Alibaba, NetEase, Kuaishou, and JD Health, with particular optimism for Alibaba's cloud business, Tencent's AI applications, and Xiaomi's consumer-grade AI devices [1]