Citi: China internet sector valuations attractive despite selloff

Citi's note is notable less for its stock picks than for its framing: rather than arguing sentiment will improve, it argues valuations hold up even under a severe earnings downgrade scenario. That shifts the debate from timing a rebound to how much pessimism is already embedded in prices. The read-across matters most for investors with existing China internet exposure, where the question is whether earnings estimates have bottomed. The open question is whether sell-side conviction of this kind spreads to other banks or remains an outlier against prevailing sentiment.