HSI1 22,881.02 -145.66 308.05B
HSCEI1 7,558.30 -47.04 109.39B
Back    Zoom +    Zoom - Block Traded
Haitong Intl: Weak Share Price of BABA-W Mainly Driven by Investment Sentiment; Outperform Rating Reiterated
2026-06-30 11:41:05
A slew of recent negative news, including BABA-W (09988.HK) being placed on a related US list and concerns over tighter e-commerce regulation, has weakened the share price of BABA-W, Haitong International said in its report, which attributed this to investment sentiment. Against this backdrop, reports that BABA-W may sell Lingxi Interactive Entertainment further highlight management's strategy of focusing on the two core businesses: e-commerce and AI cloud.

Although the expected proceeds of RMB7-9 billion from the sale of Lingxi Interactive Entertainment are relatively small compared with Alibaba's AI investment plan of as much as RMB380 billion, the transaction could improve capital allocation efficiency, reduce non-core spending, and make the company's strategic focus clearer. The broker upheld a positive view on this potential asset divestment, believing that besides enhancing financial flexibility, it could also narrow the conglomerate discount and strengthen the company's commitment to reallocating resources toward AI infrastructure and cloud computing.

The broker reiterated its Outperform rating on Alibaba Group Holding Limited (BABA.US).
~

AASTOCKS Financial News
Website: www.aastocks.com