Two weeks ago, I mentioned that China Concept Internet's PS dropped to 1.68, with a percentile of 0.50%, PB dropped to 1.98, with a percentile of 0.53%, and the index temperature was only 0.5 ° C At that time, it was said that the cost-effectiveness had reached a relatively high point. It's easy to find reasons for the decline, such as ByteDance not going public, industry competition, food delivery index, Hong Kong stock liquidity, exchange rate fluctuations, external suppression - just list a dozen or so. But if the fundamentals are not a problem, the power of valuation as a benchmark has been verified many times in the past Yesterday it rose, and there are still plenty of reasons to find. Alibaba's Q1 financial report for the 27th fiscal year for institutions shows that all three major businesses exceeded expectations. Alibaba Cloud grew 45% year-on-year, the highest growth rate in nearly six quarters Taobao Flash Shopping (Ele.me) has significantly reduced its losses, with a 40% month on month decrease in losses and a market share of 45.2%, on par with Meituan. After being interviewed in the food delivery battle, the two are expected to become the big and small kings of instant retail The resilience of traditional e-commerce business still exists, and essential products are still the basic stock. The market voted with money, and Alibaba rose more than 12%, with a market value exceeding HKD 2 trillion. After the price increase, Alibaba's dynamic P/E ratio is about 17 times, price to book ratio is 1.71 times, and price to sales ratio is 1.78 times. The thing is good, the price is not expensive In addition, it is reported that the national foreign exchange reserves will continue to increase the asset allocation ratio in Hong Kong, and the central bank will also increase the investment quota of Bond Connect southbound link from 500 billion to 800 billion. The net inflow of southbound funds this year has exceeded 260 billion yuan If there are no fundamental issues with the fundamentals, the power of valuation will always manifest in the long run. No need to accurately predict the day of reversal, just collect chips according to the plan when undervalued, and cash out according to discipline when overvalued At present, China Concept Internet is still in the bottom area