CITIC Securities, one of China’s leading securities firms, recently held the Platform Economy Symposium, marking a significant milestone for the internet industry. The symposium showcased the industry’s entrance into a new stage of standardized, healthy, and sustainable development.
During the symposium, CITIC Securities presented its research report, which highlighted the positive signals released by relevant policies of internet platform companies since July 2023. The report revealed that the rectification of key issues of platform companies has been gradually completed, and the regulatory system has also been improved.
The focus of future work for relevant ministries and commissions has shifted from rectification to normalized supervision. This change aligns with the government’s directive, as the Politburo meeting in July 2022 proposed a focus on launching a batch of “green light” investment cases. The goal is to improve the real economy and enhance international competitiveness.
CITIC Securities predicts that the resolution of regulatory cases and the clarity of regulatory policies will boost investment sentiment in the internet sector. In the short term, the firm recommends focusing on the marginal improvement in sentiment and the inflection point of recovery in the fundamentals of various companies.
Looking ahead, CITIC Securities suggests concentrating on top internet companies with leading layouts in areas such as artificial intelligence and cloud computing. These companies possess solid global competitive advantages, display obvious performance improvement trends, and boast stable cash flow.
The Platform Economy Symposium organized by CITIC Securities serves as an essential platform for industry experts and stakeholders to discuss the future of the internet industry in China. By highlighting the progress made in rectifying key issues and improving regulatory policies, it lays the foundation for a standardized, healthy, and sustainable development of the industry.
As the regulatory landscape continues to evolve, it is expected that China’s internet industry will stay at the forefront of innovation and contribute significantly to economic growth and competitiveness on the global stage.