Alibaba’s shares continued to rise, hitting a record high of HK$218.4, while Alibaba’s U.S. shares also hit a record high. As of the time of writing, Alibaba was up 1.21 per cent at HK$128.2 in Hong Kong, with its latest market capitalisation of HK$468.3 bn, or $603.1 billion, the first time it has exceeded $600 bn. Another Big Spot in Hong Kong rose 1.79 per cent, with the latest market capitalisation of HK$379.43bn, or $488.6bn, while Meituan Dianping rose 1.43 per cent to HK$110, giving it a market capitalisation of HK$638.9bn, or $82.3bn.
Daisu first to the stock “buy” rating, the target price of 250 yuan. The bank said in a research note that it would be in a strong position in the coming years to benefit from an upgrade in consumer spending in developing regions, and that the group was expected to maintain its leadership position and maintain higher-than-peer visibility and resilient earnings growth.
Daiwe also pointed out that this year Alibaba will have a number of positive catalysts, including the opportunity to include the Hang Seng Index component stocks and Hong Kong stock exchange, information flow advertising revenue than expected, its supply chain capacity to improve, the establishment of ecosystems in developing regions, and the growth rate of overseas markets faster than the same industry.
Tan Zhile, Deputy Manager of Research at Yew chung Securities, said that the new economic stocks would be sought after by funds in the short term, mainly because the market’s view of the economic outlook had turned positive, making it easier for the valuation of new economic stocks to be raised. He noted that Tencent, Alibaba and Group of America (3690) remain the preferred shares this year.