J.P. Morgan Chase published a report stating that $BABA-W (09988.HK)$ It was officially incorporated into the Hong Kong Stock Connect on Tuesday (10th). On the same day, Alibaba Hong Kong's stock price rose 4%, up 0.2% from the Hang Seng Index during the same period, and recorded a capital inflow of HK$8.4 billion, accounting for 90% of the total southbound capital inflow on the same day. Its trading volume doubled to HK$16.9 billion, accounting for about 15% of the total Hong Kong stock turnover of HK$107 billion on the same day. Although the bank expects that the full impact of Ali's inclusion in Hong Kong Stock Connect and southbound capital inflows will take a few months to become apparent, it believes that based on the basic development of e-commerce in China, Ali will be a key driver of its stock price within 6 to 12 months.

Furthermore, it is estimated that Taobao and Tmall's traffic, total commodity transaction value (GMV) and monetization will continue to improve over the next few quarters, and a technical catalyst has emerged to maintain its “gain” rating. The target price is HK$106.