$BABA HK Listing & Southbound Stock Connect: Two Key Considerations

BrianTycangco鄭彥渊
09-01

Two things to consider with $Alibaba(BABA)$ $BABA-W(09988)$ HK primary listing status opening up the likely inclusion into the Southbound Stock Connect program:

1. If it doesn’t result in ordinary mainland investors buying Alibaba’s shares in HK, nothing much changes from the status quo. Alibaba is still on track to have a great 2024 with antitrust completed and all divisions contributing to profitability. It’s a company trading at 9X fwd PE with a 2.4% yield.

2. If it DOES result in mainland investors buying up shares, the impact could be substantial especially if China unleashes some sort of consumption-focused stimulus. This is actually already starting with the news of mortgage refinancing for existing borrowers. The lower rates will unleash tens of billions of dollars in extra spending power.

https://x.com/BrianTycangco/status/1829712990524108990

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