Xiaomo expects that the full impact of Ali's inclusion in the Hong Kong Stock Connect and southbound capital inflows will take several months to become apparent.
The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that maintaining the Alibaba-SW (09988) “gain” rating, it is expected that Taobao and Tmall's traffic, total commodity transaction value (GMV) and monetization will continue to improve in the next few quarters. A technical catalyst has emerged, with a target price of HK$106.
Alibaba 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 received 8.4 billion yuan in capital inflows, accounting for 90% of the total southbound capital inflow on the same day. Its transaction volume doubled to 16.9 billion yuan, accounting for about 15% of the total Hong Kong stock turnover of 107 billion yuan on the same day.
According to the report, although the bank expects that the full impact of Ali's inclusion in Hong Kong Stock Connect and southbound capital inflows will take several months to become apparent, it believes that based on the basic development of e-commerce in China, Ali will become a key driver of its stock price within 6 to 12 months.