Intelligent Finance APP learned that Morgan Stanley released a research report stating that Alibaba-SW (09988) Taobao and Tmall are fully integrated with Tencent's WeChat Pay. The bank believes that this move is an important milestone for both ecosystems and can bring a win-win situation.

In the long run, Tencent will gain valuable consumer transaction data, which can enhance its market insights into the advertising business and give it a target price of HKD 450. The bank points out that the integration of both parties will help Taobao and Tmall further penetrate lower-tier cities and maintain their stable market share. The bank will focus on whether Alibaba will strategically allocate more resources to acquire more users in lower-tier cities. For Tencent, this move can increase the market share of WeChat Pay, especially for online payments.