Avery Schumer
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Avery Schumer in Sector Report,

3 Chinese Internet Stocks Better Than The Rest

Alibaba Group Holding Ltd shares are down 22 percent year-to-date, while shares of TENCENT HOLDINGS ADR  are up 31 percent over the same period.

Citi’s Thomas Tong identified Tencent, Alibaba and ChinaNetCenter as the top picks in the 32-stock China internet universe.

Valuation euphoria about Chinese internet stocks has subsided with the realization that O2O will take time to deliver, Tong said.

Analyst Thomas Chong mentioned that the valuation euphoria around Chinese internet companies has subsided with investors realizing that initiatives such as O2O will take time to deliver results.Companies like Alibaba, Tencent and Baidu Inc (ADR) will spearhead consolidation in the sector by leveraging off their existing dominance.