Citigroup Initiates Coverage on a Number of Chinese Internet Stocks

In a report dated July 24 Citigroup analyst, Thomas Chong laid out his mostly bullish view on a number of stocks in China's internet sector. The report comes amid a transition from PC to mobile by both users and internet companies. Chong said that China internet companies have now embraced the opportunities that mobile presents and believes the stocks have a number attractive characteristics. Chong's top picks includes Baidu Inc BIDU, which he says is well positioned to take advantage of opportunities in the online-to-offline market. He also made mention of Qihoo 360 Technology QIHU and Vipshop Holdings VIPS, which he says have strong brands, execution and visible earnings. The stocks covered by Chong that are listed on a U.S. exchange are listed below sorted be their respective ratings. Buy

• Weibo Corporation WB - $22.60 (price target)
• Baidu Inc BIDU - $245
• Qihoo 360 QIHU - $114.10
• Vipshop Holdings VIPS - 249.90
• SINA Corporation SINA - $58.80
• Sohu.com Inc. SOHU - $66
• Cheetah Mobile Inc. CMCM - $23.20
• E-Commerce China Dangdang Inc. DANG - $15.20
• Jumei International Holding Limited JMEI - $32.60

Neutral

• NetEase, Inc. NTES - $87.60
• Perfect World Co., Ltd. PWRD - $20.70
• Sungy Mobile Limitied GOMO - $11.80

Sell

• Changyou.com Limited CYOU - $23.40