$Alibaba(BABA)$ Said that it will spin off its businesses into six different parts, and it is possible to list them separately for financing. The market believes that this move will release the value of various sub-businesses locked in Alibaba's complex corporate structure, $Alibaba(BABA)$ soared 15% on Tuesday trading.
Driven by $Alibaba(BABA)$ $Alibaba(09988)$’s news, $Invesco Golden Dragon China ETF(PGJ)$ Swinging the tide and rose 3.5%, the largest single-day increase in two months.$CSI China Internet ETF(KWEB)$ soared 4.3%，BABA concept stocks includes $Weibo(WB)$ and Chinese ADRs lik like $Baidu(BIDU)$ see different levels rise.
On Asian Market$Hang Seng Index - main 2303(HSImain)$ increased 2.2%, and has strongly recover the 20,000-point integer mark. $中概互联网ETF(513050)$increased 3.89%.
However, there is nothing good about the technology sector of US stocks.
Although the local banking crisis in the United States seems to have come to an end for the time being. However, at the congressional hearing, the Fed's vice chairman for supervision, William. Barr told the public that depositors attempted to withdraw $100 billion in deposits from Silicon Valley Bank $SVB Financial Group(SIVBQ)$ in two days.
Depositors withdrew US$42 billion in one day on March 9th and were planned to withdraw more than $50 billion in deposits on the 10th. The scale and speed of this loss of deposits are far greater than anyone imagined. This is likely to be the largest and fastest historic squeeze in American history.
Now that the local banking crisis has been suspended, U.S. bond yields have risen accordingly. The market believes that the probability of the Fed continuing to raise interest rates has increased, and the U.S. technology sector is under pressure.
We all understand that the Fed's interest rate decision determines the discount rate of future cash flows of technology companies. However, the current state of the market shows that the business prospects of technology companies are not the most decisive factor in their stock prices.
In other words, Powell's pricing power over the stock price is actually greater than that of the company's management-this is definitely a market distortion.
At the same time, the US Congress is still discussing the TikTok bill. If the bill passes, software from what is defined as an "adversary country" would be banned. If the American people try to use it over the wall, the maximum sentence may be 20 years in prison. The same judicial logic, if true, does not only apply to TikTok.
Does the United States want information to be closed?
U.S. inflation data will be in the spotlight again on Friday. In a market where the outlook for inflation and interest rates remains uncertain.
For the technology sector in the United States and China, if Powell abandons his original intention and turns around, then everyone will be happy; if not, under the positive influence of $Alibaba(BABA)$ , China's technology stocks should be able to get a boost, and there is a blueprint for adding value to other technology companies. draft, but U.S. technology stocks can only rely on Powell, not even what their management said.
After nearly two months of corrections, the $HSTECH(HSTECH)$ sector seems to be emerging from a classic "reverse head and shoulders" technical form: the left and right shoulders are symmetrical, and the volume of the left shoulder is greater than that of the right shoulder (as shown in the figure).
It seems that in the end, the market has the final say.
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