09988 Overview

Financial Results: BABA-W reported financial results for Q3 FY2025, with revenue and adjusted EBITA falling 2% and 27% below expectations, primarily due to weak e-commerce growth and high investments in instant retail and AI, resulting in a 7% drop in share price.

Growth Prospects: Despite the disappointing results, analysts believe BABA-W's growth prospects are improving, presenting a favorable entry point for long-term investors, leading to a reduction in target prices for its US stock and H-shares.

JP Morgan's Analysis of Alibaba: JP Morgan's report indicates that Alibaba's stock is undervalued, primarily reflecting only its domestic e-commerce earnings, while overlooking the potential of Alibaba Cloud and quick commerce platforms.

Forecast Adjustments: The broker has lowered its revenue and adjusted EPS forecasts for Alibaba for FY26 and FY27, resulting in a reduction of the target stock price for both US and H-share listings.

Alibaba Cloud Growth: Alibaba Cloud has shown significant revenue growth, rebounding to 36% in the latest quarter, with AI product revenue experiencing triple-digit growth for ten consecutive quarters.

Jefferies' Position: Jefferies has also adjusted its target price for Alibaba to $206 while maintaining a Buy rating, citing improvements in quick commerce fundamentals.

Stock Performance: BABA-W (09988.HK) experienced a decline of 2.183%, with short selling amounting to $3.72 billion and a ratio of 14.488%.

AI Ride-Hailing Feature: Alibaba's Qianwen has introduced an AI ride-hailing feature that allows users to perform tasks like vehicle selection and scheduling through voice commands.

Integrated Services: Qianwen leverages Alibaba's ecosystem to provide a range of integrated services, including flight, hotel, and taxi bookings.

Analyst Outlook: UBS maintains a "Buy" rating on BABA-W, noting that while recent results missed expectations, the long-term outlook remains positive.

Joseph Tsai's Speech: At the China Development Forum 2026 Annual Meeting, Joseph Tsai discussed four key factors for the success and growth of the AI industry in China.

China's Manufacturing Advantage: Tsai highlighted that China possesses the world's largest manufacturing system, contributing nearly 30% of global manufacturing added value, which is crucial for AI development.

Digitalization and Data Utilization: The rapid digitalization of China's vast production network generates massive industrial data, which is essential for training industrial AI.

AI's Societal Impact: Tsai emphasized that the ultimate goal of AI is to not only develop advanced models but also to make AI applications widely accessible for societal benefits.

Southbound Trading Inflows: TRACKER FUND (02800.HK) saw significant net inflows of HKD8 billion, with HKD5.9 billion from Shanghai-Hong Kong Stock Connect and HKD2.1 billion from Shenzhen-Hong Kong Stock Connect.

Short Selling Activity: The short selling for TRACKER FUND reached $9.87 billion, with a ratio of 48.692%, while other notable stocks like HSCEI ETF and TENCENT also experienced substantial short selling.

Net Outflows: BABA-W (09988.HK) recorded the highest net outflow of HKD287.3 million, while HUA HONG SEMI (01347.HK) had a net outflow of HKD242.4 million.

Overall Trading Summary: The total Southbound Trading net outflow was HKD0, accounting for 47.17% of the total transaction amount of HKD116.3 billion.

Short Selling Turnover: The short selling turnover in the Hong Kong market reached $52.5 billion, accounting for 27.9% of the eligible securities turnover, an increase from 22.4% on the previous trading day.

Top Short Selling Shares: The top five shares with the highest short selling amounts include TRACKER FUND (02800.HK) at $9.87 billion, CSOP HS TECH (03033.HK) at $4.93 billion, and HSCEI ETF (02828.HK) at $3.66 billion.

Short Selling Ratios: TRACKER FUND has the highest short selling ratio at 70.6%, followed by CSOP HS TECH at 58.1% and HSCEI ETF at 61.3%.

Other Notable Stocks: Tencent (00700.HK) and Alibaba (09988.HK) also featured in the top five, with short selling amounts of $1.78 billion and $1.52 billion, respectively, and ratios of 20.3% and 26.2%.