Goldman Sachs released a research report stating that $BABA-W (09988.HK)$ the target price for Hong Kong stocks is HKD 105. It believes that the total transaction volume of Taobao and Tmall has shown a renewed acceleration this year. Combined with its growth reform and user-centric strategy, it indicates that the goal of prioritizing the development of core business for Taobao and Tmall is on track.

Yesterday, Alibaba issued a proposal to add WeChat Pay as a new payment method on its Taobao and Tmall platforms for the first time. Goldman Sachs believes that this is within expectations. Starting from September 1, Taobao and Tmall will begin to charge software service fees, which paves the way for expanding online payment methods outside of Alipay for the Taobao and Tmall platforms. In the eyes of the bank, this could eventually open up further cooperation potential, such as Taobao and Tmall having the opportunity to have a mini-program within the WeChat ecosystem. $TENCENT (00700.HK)$

The bank stated that the addition of new payment methods by Alibaba may help develop new, low-tier city users and improve the convenience of existing users. Goldman Sachs believes that adding WeChat Pay to the Taobao and Tmall applications will provide Alibaba with a new option, further increasing user penetration rate, and continue to maintain the accelerated growth of its Gross Merchandise Volume (GMV).