Original title: Guo Jiayao of Zhengrong Finance: Ant Group's future listing will increase Ali's overall valuation Source: Caihua.com
US stocks showed positive results on Wednesday. The market reacted positively to COVID-19 vaccine tests. Coupled with Washington considering extending unemployment aid, which is favorable to the market atmosphere, all three indices recorded increases and closed. The trend of the US dollar continued to weaken. Interest on US ten-year bonds remained at 0.60%. Gold prices continued to be strong, while oil prices declined slightly. Hong Kong Stock Depositary Securities are improving moderately, and it is expected that the market will lack direction in the early stages. The mainland stock market continued to improve. The Shanghai Composite Index closed up 0.4% and continued to stabilize at 3,300 points. The turnover of the Shanghai and Shenzhen markets remained active. The trend of Hong Kong stocks was reversed. Affected by the tense relationship between China and the US, the index ended up turning from rising to falling, falling sharply by more than 500 points, and trading continued to be active. The short-term trend of the market is uncertain. Mainly affected by news of the epidemic and the further development of Sino-US relations, the index is expected to remain at the level of 25,000 to 26,000 points.
Industry News Ant Group announced the launch of a plan to seek simultaneous listing on the main board of the Hong Kong Stock Exchange and the Science and Technology Innovation Board of the Shanghai Stock Exchange to further support the digital upgrading of the service industry to increase domestic demand, strengthen global cooperation to help global sustainable development, and support the company to increase technology research and innovation. Jing Xiandong, chairman of Ant Group, said he is happy to see the Science and Technology Innovation Board and the Hong Kong Stock Exchange launch a series of reform and innovation initiatives to create favorable conditions for new economy companies to better obtain capital market support, including international capital support. The group is happy to have the opportunity to participate. The listing will allow the group to face the world more transparently, face the public, gather more like-minded peers, and at the same time better share its achievements and future with the whole society. According to foreign news reports, Ant Group's target valuation is over 200 billion US dollars, and the amount of capital raised by Ant Group in Hong Kong will reach 10 billion US dollars. The successful listing of Ant Group in the future will help reflect the company's value and enhance Ali's overall valuation.
Guo Jiayao, Vice President of Zhengrong Financial Business Department CFA (The author is a license holder of the Securities Regulatory Commission, I do not own the above shares) Date: Thursday, July 23, 2020