0445 GMT - The recent selloff of Chinese internet stocks has created a compelling opportunity in terms of valuations, Citi analysts say in a research note. China's internet sector has underperformed as it has been treated as a source of funds to buy AI hardware stocks, the analysts say. As a result, the Hang Seng Index is down 11% so far this year while the Kospi is up 100% despite recent volatility. The analysts think PDD and Meituan are now trading near their five-year trough multiples. "With solid net cash positions and outstanding buyback programs, we expect companies to accelerate their buyback pace, and we believe that fundamentals will eventually prevail," they say. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

June 29, 2026 00:45 ET (04:45 GMT)

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