2025 Chinese Internet Stocks: Valuation Insights, AI Impact, and Regulatory Trends

• According to Yahoo Finance, Alibaba’s cloud business revenue soared 34% in Q2 2025 driven by AI boom, though quarterly profit slumped [1].
• CNBC reports China released a stable foreign investment action plan in February 2025 covering telecom and biotech sectors with clearer procurement standards [9].
• WTNH notes 2025 regulatory shifts: EU Digital Markets Act impacts and U.S. tech policy changes under the new administration [6].

• Reddit users compare 恒生科技 (HKEX Tech) and 中概互联 ETF (SH513050), emphasizing SH513050’s pure internet focus including unlisted PDD.
• Xueqiu user 逸修1 states Tencent’s 2025 valuation is ~20x with expected EPS growth of12-15%, while Alibaba faces EPS pressure from takeaway competition [12].

Research and social media align on AI as a key growth driver (Alibaba cloud) but diverge slightly on near-term risks: research highlights regulatory challenges (EU DMA, U.S. policy) while social media focuses on valuation opportunities (PDD, Kuaishou at ~12x 2026 PE). Mixed sentiment stems from balancing long-term AI potential against short-term profit pressures and regulatory uncertainties.