Alibaba-Linked Stocks Surge in Hong Kong—But Alibaba Itself Remains Weak
Trending Articles- Gold Price Forecast: Oil Price Breaking $100 Fuels Inflation Concerns, Will Gold Prices Fall Further?
- Gold Price Trend Forecast: Expectations of Easing US-Iran Tensions Boost Gold Prices, $4,070 Becomes Key Level for Bulls and Bears
- Gold rallies to over two-week high, eyes $4,150 as traders track US-Iran diplomacy efforts
- Euro declines to near 1.1400 as US launches fresh strikes on Iran
- Tesla Q2 Earnings Preview: Record Deliveries Fail to Hide Profit Pressure, Can Musk Rely on AI and Autonomous Driving to Unlock New Growth Space?
- WTI climbs above $87.00 as Middle East conflict threatens key choke points
TkradingKey - During midday trading, rumors spread that Ant Group plans to apply for stablecoin licenses in Hong Kong and Singapore. In response, Ant Group stated it will submit applications promptly once the relevant regulatory channels are open.
In reaction, shares of Alibaba-affiliated stocks surged in afternoon trading. Yunfeng Financial (00376.HK) jumped over 60%, Lion Rock Holdings (02562.HK) rose nearly 16%, Yau Lee Securities (01428.HK) gained more than 11%, and Alibaba Health (00241.HK) climbed over 3%. In contrast, Alibaba (09988.HK) remained under pressure, falling more than 3.2% on the day.
【Alibaba-W Intraday Chart, Source: TradingView】
On the 11th, a widely circulated 10,000-word resignation letter from a former Alibaba employee sparked extensive discussion across Chinese social media. The essay provided a deep analysis of the challenges currently facing the company and received a personal reply from founder Jack Ma, once again highlighting the serious difficulties Alibaba is encountering during its transformation phase.
Jack Ma responded positively to the letter, stating that Alibaba’s development involves many necessary paths and processes, and that the company is undergoing change. His reply was seen as an indirect acknowledgment from senior leadership regarding internal concerns.
The former head of product and R&D at DingTalk pointed out in the article that Alibaba’s past success stemmed from favorable market opportunities and Jack Ma’s strategic vision. However, since 2017, signs of fatigue have gradually emerged. He argued that slowing growth in the broader internet sector, failed integration of most external acquisitions, and a lack of successful internal innovation have been the main reasons behind Alibaba’s loss of high-speed growth momentum.
If approved, Ant Group’s application for stablecoin licenses could promote blockchain technology adoption. Although Alibaba itself has not directly engaged with Bitcoin or other cryptocurrencies, its affiliated entities’ exploration into digital currencies may indirectly influence market expectations.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
