Gelonghui, May 23 | Alibaba Group announced that it plans to issue US$4.5 billion convertible senior notes, which expire in 2031. According to the announcement, the main uses of the funds raised include: providing funds to establish bullish transactions with limited prices; and carrying out simultaneous repurchases and future repurchases according to existing share repurchase plans. Among them, it is worth noting that according to the announcement, the upper price of a bullish limit transaction is expected to be 100% higher than the final transaction price of American Depositary Shares on the day the note was issued and priced. It can be understood that Alibaba will buy bullish options for its shares to rise by about 100%, sending a strong bullish signal. Market analysts pointed out that Ali has sufficient cash and a stable financial situation, and that issuing convertible bonds is “developing itself in a smart way,” and that the world's leading technology companies such as Apple and Amazon are all doing the same: by the end of 2023, Ali's overall balance ratio was 37.3%, far lower than Amazon's 61.8% and Apple's 79% during the same period. “This is good for shareholders. It also means that Ali is optimistic about its own development prospects and is confident in increasing value.” According to the announcement, simultaneous repurchases can facilitate initial hedging for investors. In addition to simultaneous repurchases, the company may also make future repurchases after the notes have been priced.