Wall Street’s stance on China ADRs shifted in July from "helplessness" to "tactical longs," according to Bank of America analyst Alex Liu. Three core themes dominate: the commoditization of large language models (LLMs), easing competitive pressure from ByteDance, and persistently weak macro consumption. Capital now focuses on AI applications and on-device ecosystems rather than standalone model technology. Tencent, Alibaba, Meituan, and JD.com attract capital due to AI applications or easing competition, though concerns remain over new business investments and cost pressures. Sluggish summer travel demand creates headwinds for Trip.com, while Baidu draws attention on AI chip spin-off speculation. The market watches upcoming model releases including DeepSeek V4 Pro, Alibaba's Qwen 4.0, Zhipu GLM 5.3, and MiniMax M3.1. Among unlisted unicorns, Zhipu AI is viewed as a "high-quality" target after strong user and revenue performance following GLM 5.2, though its coding capability leadership is questioned. MiniMax lags in model capability, but its valuation of USD 11 billion (approximately TWD 350 billion) appeals to some capital. Wall Street adopts a more opportunistic approach, selectively betting on structural opportunities within China's tech sector.