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| HSI1 | 25,652.97 | 0.00 | -- |
| HSCEI1 | 8,533.84 | 0.00 | -- |
| Back Zoom + Zoom - Block Traded | |
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S&P: BABA-W Share Placement to Support AI Growth Plans
2026-08-26 16:36:48 S&P said BABA-W (09988.HK)'s efforts to preserve capital will limit its cash usage and maintain its credit strength, despite continued ramp-up in AI investment. To support growing capex, BABA-W announced an HKD80 billion (equivalent to RMB70 billion) share placement. S&P estimated the amount will be sufficient to fully cover the company's cash shortfall through the fiscal year ending 31 March 2027. S&P forecast its 2026 capex will reach RMB160 billion, up from RMB127 billion in 2025. In addition, S&P believed BABA-W may curb cash spending by adjusting shareholder returns based on investment needs, reducing Quick Commerce subsidies, and selling or cutting investments in non-core assets. According to media reports, the company agreed to sell its gaming business unit Lingxi Interactive Entertainment. BABA-W's higher spending includes AI computing infrastructure, cloud services, and user acquisition costs for its Qwen AI applications. In addition, S&P expected losses in Quick Commerce to gradually narrow, although they will continue for several more quarters. BABA-W is expanding its AI monetization efforts across the value chain, covering LLMs, cloud services, and computing chips. Even so, S&P estimated an enormous proportion of revenue over the next 12-24 months will still step from existing channels, such as increasing cloud infrastructure revenue and enhancing e-commerce engagement among existing users. ~ AASTOCKS Financial News Website: www.aastocks.com | |