KraneShares – China Internet Report, 2024

The meeting between Presidents Biden and Xi in 2023 signaled a positive shift in US-China relations. Many Chinese internet companies, including Tencent and Baidu, are returning capital to shareholders through share repurchase programs. The year-over-year growth for these companies in the third quarter was lower compared to the second quarter due to a high base effect. Alibaba postponed its cloud services unit IPO due to uncertainties in the global semiconductor supply chain. The company also announced its first-ever annual dividend, rewarding long-term investors. Chinese internet companies are currently trading at a -30% lower earnings multiple than US internet companies, prompting recommendations for increased dividends. The report highlights these developments in the China internet industry, emphasizing the changing landscape and opportunities for investment in the sector.