CLSA Reduces Alibaba's (BABA.US) Current Fiscal Year Adjusted Net Profit Estimate by 13%, Maintains Outperform Rating
E-commerce Challenges: CLSA reports that Alibaba's e-commerce sector is facing challenges due to intense competition and reduced trade-in subsidies, which may lead to slower growth in Taobao and Tmall's CMR.
Cloud Business Growth: The cloud segment is expected to thrive, with a projected 35% year-over-year growth driven by strong demand for AI services, contrasting with the e-commerce sector's struggles.
Revenue and Profit Forecasts: The broker anticipates a 3% year-over-year revenue growth for Alibaba in the third fiscal quarter, but adjusted EBITA is expected to decline by 52%. Adjusted net profit forecasts for fiscal years 2026 and 2027 have been reduced by 13% and 4%, respectively.
Overall Rating: Despite the challenges in e-commerce, CLSA maintains an Outperform rating on Alibaba, highlighting the cloud business as a key growth area amidst macroeconomic uncertainties.
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Report: Qianwen from BABA-W and Yuanbao Red Packet from TENCENT Now Allow Copying in WeChat
Stock Performance: BABA-W (09988.HK) saw a rise of 2.516%, while TENCENT (00700.HK) experienced a decline of 2.922% in their stock prices.
Short Selling Data: BABA-W had short selling of $2.37B with a ratio of 19.556%, while TENCENT's short selling reached $2.97B with a ratio of 15.248%.
WeChat Developments: Chinese media reported that WeChat has now allowed the copying of TENCENT's "Yuanbao" within its platform, following earlier restrictions against both "Qianwen" and "Yuanbao".
Market Context: The changes in WeChat's policies come amid a competitive landscape for AI red packets during the Spring Festival, where both companies were previously facing a blockade.
HKD4.3 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows totaling HKD4.3 billion, while other stocks like BABA-W (09988.HK) and POP MART (09992.HK) experienced notable short selling activity.
Market Activity Overview: TENCENT was the most active stock in both Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, with substantial net inflows, while stocks like XIAOMI-W and AKESO faced the highest net outflows.
Short Selling Statistics: The short selling ratios for TENCENT, BABA-W, and POP MART were 15.248%, 19.556%, and 27.852% respectively, indicating a high level of market speculation.
Overall Market Sentiment: The total Southbound Trading net outflow was HKD0, accounting for 35.67% of the total transaction amount of HKD88.42 billion, reflecting fragile market sentiment according to JPM.
AI Orders on BABA-W's Qianwen App Exceed 10 Million Within 9 Hours of Free Order Promotion Launch
Stock Performance: BABA-W (09988.HK) experienced a decline of 2.88%, with short selling reaching $2.37 billion and a ratio of 19.556%.
Qianwen App Promotion: The Qianwen App launched a "Spring Festival Treat Plan," offering free milk tea orders, which resulted in over 10 million AI orders within nine hours of the event.
Short Selling Activity Reaches $47.7B, Representing 22.1% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $47.7 billion, accounting for 22.1% of the eligible securities turnover, slightly down from 23% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W, with CSOP HS TECH leading at $7.79 billion and a short selling ratio of 66.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 0.947%, with a significant short selling turnover of $7.79 billion and a high short selling ratio of 66.7%.
Other Notable Stocks: TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W also showed notable short selling activity, with TENCENT at $2.97 billion and a ratio of 15.2%, while MEITUAN-W had a turnover of $961.98 million and a ratio of 26.6%.
G Sachs: 2026 Crucial Year for AI Investments; BABA, TENCENT, and PDD Preferred Choices
Goldman Sachs Report: A research report from Goldman Sachs highlights 2026 as a pivotal year for AI investment and for Chinese internet companies to maintain their market positions amid rising competition in consumer AI applications.
Investment Focus: The report emphasizes the importance of seamless transaction capabilities and social functions for user retention, while predicting significant growth in AI capital expenditure by Chinese hyperscalers during 2026-2027.
Optimistic Sub-segments: Goldman Sachs identifies cloud & data centers, games & entertainment, and AI models as promising areas for investment, with Alibaba and Tencent being the most competitive stocks among Chinese internet giants.
Emerging Competitors: The report suggests that mid-to-large-sized companies, particularly PDD Holdings, may outperform larger giants in 2026 due to favorable valuations and strong user perceptions.
Short Selling Activity Reaches $25.9B, Representing 22.6% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $25.9 billion at midday, accounting for 22.6% of the turnover of eligible securities, slightly down from 23% on the previous trading day.
Top Shorted Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, TRACKER FUND, and XIAOMI-W, with CSOP HS TECH leading at $4.41 billion and a short selling ratio of 67.2%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) saw a decrease of 0.015 (-0.284%) with a significant short selling turnover of $4.41 billion.
Other Notable Stocks: TENCENT (00700.HK) and BABA-W (09988.HK) also experienced notable short selling, with turnovers of $1.74 billion and $1.42 billion, respectively, and short selling ratios of 15.5% and 21.1%.
Report: Qianwen from BABA-W and Yuanbao Red Packet from TENCENT Now Allow Copying in WeChat
Stock Performance: BABA-W (09988.HK) saw a rise of 2.516%, while TENCENT (00700.HK) experienced a decline of 2.922% in their stock prices.
Short Selling Data: BABA-W had short selling of $2.37B with a ratio of 19.556%, while TENCENT's short selling reached $2.97B with a ratio of 15.248%.
WeChat Developments: Chinese media reported that WeChat has now allowed the copying of TENCENT's "Yuanbao" within its platform, following earlier restrictions against both "Qianwen" and "Yuanbao".
Market Context: The changes in WeChat's policies come amid a competitive landscape for AI red packets during the Spring Festival, where both companies were previously facing a blockade.
HKD4.3 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows totaling HKD4.3 billion, while other stocks like BABA-W (09988.HK) and POP MART (09992.HK) experienced notable short selling activity.
Market Activity Overview: TENCENT was the most active stock in both Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, with substantial net inflows, while stocks like XIAOMI-W and AKESO faced the highest net outflows.
Short Selling Statistics: The short selling ratios for TENCENT, BABA-W, and POP MART were 15.248%, 19.556%, and 27.852% respectively, indicating a high level of market speculation.
Overall Market Sentiment: The total Southbound Trading net outflow was HKD0, accounting for 35.67% of the total transaction amount of HKD88.42 billion, reflecting fragile market sentiment according to JPM.
AI Orders on BABA-W's Qianwen App Exceed 10 Million Within 9 Hours of Free Order Promotion Launch
Stock Performance: BABA-W (09988.HK) experienced a decline of 2.88%, with short selling reaching $2.37 billion and a ratio of 19.556%.
Qianwen App Promotion: The Qianwen App launched a "Spring Festival Treat Plan," offering free milk tea orders, which resulted in over 10 million AI orders within nine hours of the event.
Short Selling Activity Reaches $47.7B, Representing 22.1% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $47.7 billion, accounting for 22.1% of the eligible securities turnover, slightly down from 23% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W, with CSOP HS TECH leading at $7.79 billion and a short selling ratio of 66.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 0.947%, with a significant short selling turnover of $7.79 billion and a high short selling ratio of 66.7%.
Other Notable Stocks: TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W also showed notable short selling activity, with TENCENT at $2.97 billion and a ratio of 15.2%, while MEITUAN-W had a turnover of $961.98 million and a ratio of 26.6%.
G Sachs: 2026 Crucial Year for AI Investments; BABA, TENCENT, and PDD Preferred Choices
Goldman Sachs Report: A research report from Goldman Sachs highlights 2026 as a pivotal year for AI investment and for Chinese internet companies to maintain their market positions amid rising competition in consumer AI applications.
Investment Focus: The report emphasizes the importance of seamless transaction capabilities and social functions for user retention, while predicting significant growth in AI capital expenditure by Chinese hyperscalers during 2026-2027.
Optimistic Sub-segments: Goldman Sachs identifies cloud & data centers, games & entertainment, and AI models as promising areas for investment, with Alibaba and Tencent being the most competitive stocks among Chinese internet giants.
Emerging Competitors: The report suggests that mid-to-large-sized companies, particularly PDD Holdings, may outperform larger giants in 2026 due to favorable valuations and strong user perceptions.
Short Selling Activity Reaches $25.9B, Representing 22.6% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $25.9 billion at midday, accounting for 22.6% of the turnover of eligible securities, slightly down from 23% on the previous trading day.
Top Shorted Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, TRACKER FUND, and XIAOMI-W, with CSOP HS TECH leading at $4.41 billion and a short selling ratio of 67.2%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) saw a decrease of 0.015 (-0.284%) with a significant short selling turnover of $4.41 billion.
Other Notable Stocks: TENCENT (00700.HK) and BABA-W (09988.HK) also experienced notable short selling, with turnovers of $1.74 billion and $1.42 billion, respectively, and short selling ratios of 15.5% and 21.1%.
