China's tech giants lobby for offshore yuan stablecoin, sources say
China's Tech Giants Push for Yuan Stablecoins: JD.com and Ant Group are lobbying the People's Bank of China to authorize yuan-based stablecoins in Hong Kong to enhance the international use of the yuan and counter the dominance of U.S. dollar-linked cryptocurrencies.
Regulatory Developments and Market Dynamics: The push for yuan stablecoins comes as Hong Kong seeks to establish a regulatory framework for digital currencies, amid concerns that the growing prevalence of dollar stablecoins could hinder the yuan's global payment efficiency and internationalization efforts.
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- Poor Stock Performance: Alibaba (BABA) closed at $144.11, down 2.66% from the previous trading session, significantly underperforming the S&P 500's 0.43% decline, indicating market concerns regarding its future performance.
- Earnings Outlook Deterioration: The upcoming earnings report is expected to show an EPS of $1.91, down 34.81% year-over-year, while revenue is projected at $41.26 billion, reflecting a 7.49% increase, highlighting the company's profitability pressures amid intensifying market competition.
- Negative Analyst Ratings: Currently, Alibaba holds a Zacks Rank of 5 (Strong Sell), with a 0.28% downward revision in EPS estimates over the last 30 days, suggesting a lack of investor confidence in its short-term outlook, which could further pressure the stock price.
- High Valuation Metrics: Alibaba's forward P/E ratio stands at 24.84, significantly above the industry average of 15.88, and its PEG ratio is 2.88, indicating that market expectations for its future growth may be overly optimistic, potentially affecting investor decisions.

Market Reaction to Supreme Court Ruling: The Supreme Court's recent decision on tariffs has led to immediate relief in the e-commerce sector, but investor optimism quickly waned due to fears of a potential global tariff plan.
Investor Sentiment and Market Volatility: Current market conditions reflect a hesitance among investors, who are concerned about the implications of a proposed 15% global tariff, despite the legal landscape shifting towards stability.
Alibaba's Strategic Shift: Alibaba is transitioning from an online retailer to a cloud utility provider, positioning itself as a direct competitor in the AI infrastructure race, while also preparing for its upcoming fiscal earnings report.
PDD Holdings' Business Adaptation: PDD Holdings is adapting its logistics model to mitigate challenges posed by recent tariff changes, focusing on local fulfillment to enhance delivery speeds and build a more sustainable business model.
- Stake Reduction Details: Contrarian Capital Management reduced its stake in Core Natural Resources by 187,676 shares in Q4 2026, resulting in a decrease to 0.7359% of the fund's 13F assets, indicating a waning market confidence in the stock.
- Financial Impact Analysis: This reduction led to a decline in the quarter-end value of Core Natural Resources by approximately $15.51 million, highlighting how both market price movements and share sales have affected the company's market performance.
- Market Performance Comparison: As of February 13, 2026, Core Natural Resources shares were priced at $91.51, reflecting an 8.03% increase over the past year, yet underperforming the S&P 500 by 3.76 percentage points, suggesting insufficient market competitiveness.
- Investor Outlook: The coal market has stabilized post-global energy shock, and Core's future earnings will depend on whether coal prices remain above production costs, making it crucial for investors to monitor this gap to assess the sustainability of the company's cash flow.
- Price Range Analysis: AVEM's 52-week low is $52.52 and high is $89.75, with the last trade at $88.50, indicating the stock is trading near its high, reflecting market optimism about its future performance.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide investors with valuable insights for technical analysis, aiding in the assessment of price trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows (new units created) or outflows (old units destroyed), allowing for an assessment of their impact on underlying assets and market trends.
- Oversold Stocks Overview: According to Benzinga Pro, stocks in the consumer discretionary sector with an RSI below 30 are considered oversold, indicating potential undervaluation and presenting buying opportunities for investors seeking gains.
- Key Oversold Companies: The latest list of oversold stocks includes Genuine Parts Co (NYSE:GPC), Alibaba Group Holding Ltd (NYSE:BABA), and Papa John’s International Inc (NASDAQ:PZZA), all showing an RSI near or below 30, suggesting a possible rebound in the short term.
- RSI Indicator Interpretation: The Relative Strength Index (RSI) serves as a momentum indicator by comparing a stock's strength on up days versus down days, helping traders assess short-term performance and informing investment decisions.
- Market Opportunity Analysis: The emergence of oversold stocks in the current market environment offers investors a chance to buy quality companies at lower prices, particularly in the consumer discretionary sector, which may attract value-seeking capital inflows.
- AI Coding Platform Launch: Alibaba's cloud division has introduced a new AI coding platform that allows developers to access leading Chinese AI models at a low cost, enhancing the company's competitiveness in the AI software sector.
- Flexible Subscription Model: The platform enables users to switch freely between multiple models under a single subscription, priced at just 7.9 yuan (approximately $1.15) for the first month and 40 yuan thereafter, significantly lowering the barrier to entry for developers.
- In-House AI Chip Unveiled: Alibaba's T-Head chip unit has launched the Zhenwu 810E chip, designed specifically for AI training and inference, delivering performance comparable to Nvidia's H20 processor and meeting the heavy data demands of generative AI.
- Market Reaction: Despite the product launch, Alibaba's stock fell 1.32% in premarket trading on Friday, closing at $146.10, indicating a cautious market sentiment regarding its AI strategy.









