Alibaba was included in Stock Connect, with mainland investors net purchasing nearly 8.5 billion HKD

On Wednesday (11th),State Administration of Foreign Exchange management website Hong Kong stocks opened lower, with the Hang Seng Index and Hang Seng China Enterprises Index both down by more than 1%. However, Alibaba-SW (HK:9988) rose slightly by 0.18% against the trend. Notably, this was Alibaba's first day being included in the Stock Connect, with a trading volume hitting a new high in over three years, and southbound capital net inflow nearing HKD 8.5 billion.

Morgan Stanley expects that in the next year, Alibaba will attract southbound capital inflows of between 17 and 37 billion USD, with a holding ratio between 8% and 17%. Additionally, short-term favorable factors that have recently driven Alibaba's stock price upward are gradually emerging, including the company completing a three-year restructuring, the Taotian platform integrating WeChat Pay, and the upcoming launch of software services. These factors are expected to help boost customer management revenue in the second half of the year, narrowing the growth gap in merchandise transaction volume.

This indicates that the market holds high expectations for Alibaba’s future performance, with increasing capital inflows potentially providing further upward momentum for the stock price.

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