MORNING TRADING | ALIBABA-W FELL MORE THAN 4%, HIT BY NET SELL-OFF OF CORE CAPITAL

ON OCTOBER 31, ALIBABA-W (09988) CLOSED AT HK$172.1 YESTERDAY, TO OPEN AT HK$169.8 AND HK$165.1 AS OF THE PRESS RELEASE, DOWN MORE THAN 4%.

Highlights Overview

• Aliztaobao convenience stores throw $2 billion in flash sales

• Fast Track brings global ecommerce access to triple A

• Net asset flow to net asset loss ratio is under consideration

Alibaba-W (09988.HK) has a new business expansion deployment, launching its new 24-hour convenience store brand “Taobao Convenience Stores” and plans to invest RMB 2 billion in dedicated capital to develop a flash warehouse ecosystem, improve merchandise quality and logistics capabilities, initially covering more than the country 200 cities. Meanwhile, market reports predict that cross-border e-commerce platform AliExpress is expected to be in the top three in global ecommerce platform traffic by 2025, with the pace of its international business expansion becoming a market focus.

On other business levels, several divisions under Alibaba (09988.HK) also made progress. According to data agency QuestMobile, the number of monthly active users for the Taobao flash business is close to 0.37 billion. In terms of cloud computing business, the IDC report shows that AliCloud is leading the way in China's gaming cloud market with 41% share, and has recently partnered with China Telecom to build a new smart city project in Guangyuan City, amounting to RMB 89.88 million. In addition, Ant International also announced a strategic investment in R2, a Latin American loan company, to expand its SME credit channels.

In terms of capital flows, the stock recorded a net outflow of $0.993 billion on the previous trading day, with a net equity outflow of approximately $0.643 billion. The short selling activity was also affected, with the total amount of short selling on the previous day of approximately $1.81 trillion and the short selling volume accounting for 13.44% of the total volume.

On the technical side, Alibaba -W (09988.HK)'s share price has fallen recently, falling through the 5-day, 10-day and 20-day moving averages. However, some indicators, such as the AR indicator, have entered the oversold zone from the neutral zone, and their subsequent trend changes are worth noting.