Jefferies has published a research report reiterating that artificial intelligence will continue to be the primary theme for the China internet market in 2026, followed by the defensive entertainment sector and the travel industry, which has long-term growth prospects. The firm noted that the market has already factored in recent consumer sentiment and monthly industry Gross Merchandise Volume (GMV) growth figures, with Mainland China's GMV growing 7.5% year-over-year in the September quarter, while October and November saw growth rates of 4.9% and 1.5% compared to the same period last year, respectively. Jefferies lists Alibaba-W (09988) and Tencent Holdings (00700) as its top picks in the internet sector, followed closely by Baidu Group-SW (09888), Trip.com Group-S (09961), NetEase-S (09999), Kuaishou-W (01024), Tencent Music-SW (01698), JD.com-SW (09618), and Meituan-W (03690). The report mentions that the focus within the quick-commerce e-commerce industry is shifting from low Average Order Value (AOV) orders to high AOV orders, as the latter offers better unit economics under healthy industry development. Additionally, Kuaishou's video generation model "Kling AI" has launched several new products, with analysis indicating that its generated motion control features have gained significant popularity in overseas markets since late December and into January; the firm expects Kuaishou's fourth-quarter results to meet expectations.