On Tuesday (October 15th), the Hong Kong stock market continued to decline, with the Hang Seng Technology Index dropping for five consecutive days, erasing all gains for the month. Despite Alibaba-SW (HK:9988) falling for two consecutive days, Southbound funds increased holdings against the trend, with a net purchase amount of HK$1.546 billion yesterday, demonstrating strong investor confidence in Alibaba.
On October 14th, the Hang Seng Index Company announced that Alibaba would be officially included in the Hang Seng Stock Connect Index after the close on October 25, 2024, and will take effect on October 28. This move is due to Alibaba meeting the fast-track inclusion rules of the Stock Connect Index, bringing further market attention and investment opportunities for the company.
On the same day, the Tmall Double 11 promotion officially kicked off, achieving impressive first-day results. Thanks to the government's 20% subsidy, the transaction volume of major appliances in the first hour on Tmall increased by 765% compared to the first day of last year's Double 11 pre-sale. Additionally, in the first 30 minutes, 20 beauty product brands achieved over 100 million yuan in sales, with 8 single products exceeding 100 million yuan in sales.
In an interview, Wu Jia, Vice President of Alibaba Group and President of the Taote User Platform Business Unit, stated that this year, Taobao and Tmall have realized interconnections and cooperation with multiple internet platforms, which is expected to make this year's Tmall Double 11 the most participated in by users. Guosen Securities also commented that the GMV growth rate for this Double 11 is expected to approach the market average, which in the long run, will enhance merchants' confidence and lay a solid foundation for future commercialization rates.
The continuous increase in Southbound funds' holdings of Alibaba, along with the strong first-day sales data of Double 11, both indicate the market's strong confidence in the company's future growth.
