短期震荡无需担忧，互联网技术仍在进步

Investment Rating - The report suggests a positive outlook for the internet and entertainment sectors, indicating potential investment opportunities amidst a recovering global economy and declining financing costs [3][25]. Core Insights - The report highlights that the internet sector should focus on opportunities related to gaming expansion, AI application deployment, and the recovery of cloud service demand [3][25]. - The report notes that the software and services sector's PE-TTM is at 28.6x, which is at the 56.3% percentile of the past year, while the PS-TTM is at 3.4x, at the 91.8% percentile [7][21]. - The report emphasizes that the Chinese IT service market grew by 4.1% year-on-year in the first half of 2024, reaching approximately 162.87 billion yuan [22][23]. Market Performance - The Hong Kong stock market experienced a decline, with the Hang Seng Index dropping by 0.41% and the Hang Seng Tech Index by 1.19% during the week of October 28 to November 1, 2024 [1][4]. - The report indicates that the U.S. stock market also saw declines, with the Dow Jones, S&P 500, and Nasdaq dropping by 0.15%, 1.37%, and 1.50% respectively [1][4]. - The report mentions that the e-commerce sector is witnessing growth, with the total sales for the Double 11 shopping festival reaching 845 billion yuan as of October 30, 2024 [23][24]. Industry Developments - The report notes the official release of "Pure Blood Harmony," with 15,000 native applications launched [21]. - It highlights the establishment of China's first financial industry large model and data element collaborative innovation center [21]. - The report mentions that 113 domestic online games were approved in October, indicating a vibrant gaming industry [24].