Alibaba's Debut on Stock Connect

BrianTycangco鄭彥渊

So it turns out tomorrow (9/10) in Asia is $Alibaba(BABA)$ $BABA-W(09988)$ ’s first day on the StockConnect. It’s a big day indeed and a moment of truth of sorts.

Image

Why? Because it’s the first time qualified mainland investors will be able to directly invest in the company’s shares listed in the HKEXGroup.

In a situation like that, it’s like US investors not being able to own $Amazon.com(AMZN)$ or $Meta Platforms, Inc.(META)$ for years because they were trading in an exchange off limits to them.

Many are expecting Alibaba’s shares to perform well right out of the gate on pent up demand. And why not? It’s the 800 pound gorilla of China’s ecommerce market.

The timing of the inclusion is auspicious. Alibaba just had a good 2Q. Its cash flow continues to improve. Buybacks are not easing off. It’s a cash machine generating $25B in FCF a year. That’s insane. AMZN has 2X the FCF but 9X the market cap of BABA.

IF (and it’s a big if) Alibaba soars on its first day in the Stock Connect, its effect on the rest of the CN tech ADR universe could be far reaching. This is going to be one of the most interesting weeks in China investing since China yanked the rug from underneath the Ant Group IPO almost 4 years ago.

https://x.com/BrianTycangco/status/1833147122264551876

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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LEESIMON
09-11
LEESIMON
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This is going to be one of the most interesting weeks in China investing since China yanked the rug from underneath the Ant Group IPO almost 4 years ago.</p><p>https://x.com/BrianTycangco/status/1833147122264551876</p></body></html>","htmlText":"<html><head></head><body><p>So it turns out tomorrow (9/10) in Asia is  <a data-mention-id=\"BABA\" class=\"teditor-mention\" data-mention-name=\"Alibaba\" href=\"https://ttm.financial/S/BABA\">$Alibaba(BABA)$</a>  <a data-mention-id=\"09988\" class=\"teditor-mention\" data-mention-name=\"BABA-W\" href=\"https://ttm.financial/S/09988\">$BABA-W(09988)$</a>  ’s first day on the StockConnect. It’s a big day indeed and a moment of truth of sorts. </p><p class=\"t-img-caption\"><img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/f985e697b8dd457ffa133730826384ec\" tg-width=\"1574\" tg-height=\"880\"><span>Image</span></p><p>Why? Because it’s the first time qualified mainland investors will be able to directly invest in the company’s shares listed in the HKEXGroup. </p><p>In a situation like that, it’s like US investors not being able to own <a data-mention-id=\"AMZN\" class=\"teditor-mention\" data-mention-name=\"Amazon.com\" href=\"https://ttm.financial/S/AMZN\">$Amazon.com(AMZN)$</a>  or  <a data-mention-id=\"META\" class=\"teditor-mention\" data-mention-name=\"Meta Platforms, Inc.\" href=\"https://ttm.financial/S/META\">$Meta Platforms, Inc.(META)$</a>  for years because they were trading in an exchange off limits to them.</p><p>Many are expecting Alibaba’s shares to perform well right out of the gate on pent up demand. And why not? It’s the 800 pound gorilla of China’s ecommerce market.</p><p>The timing of the inclusion is auspicious. Alibaba just had a good 2Q. Its cash flow continues to improve. Buybacks are not easing off. It’s a cash machine generating $25B in FCF a year. That’s insane. 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Many are expecting Alibaba’s shares to perform well right out of the gate on pent up demand. And why not? It’s the 800 pound gorilla of China’s ecommerce market. The timing of the inclusion is auspicious. Alibaba just had a good 2Q. Its cash flow continues to improve. Buybacks are not easing off. It’s a cash machine generating $25B in FCF a year. That’s insane. AMZN has 2X the FCF but 9X the market cap of BABA. IF (and it’s a big if) Alibaba soars on its first day in the Stock Connect, its effect on the rest of the CN tech ADR universe could be far reaching. 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