Market Insight | Alibaba-SW falls more than 5% intraday, intensifying competition in the e-commerce industry. Large-scale investments may affect short-term performance

Alibaba-SW fell more than 5% intraday, as of the time of publication, it fell by 4.14% to HKD 79.85, with a turnover of HKD 5.29 billion. On the news front, Pinduoduo released its second-quarter financial report. Pinduoduo's Chairman and Co-CEO, Chen Lei, stated during a conference call that since the beginning of this year, competition in the e-commerce industry has intensified. The platform will invest billions of resources to support new high-quality merchants, waive billions in fees for high-quality merchants, continuously improve the quality and efficiency of the supply chain, enhance ecological governance, in response to the increasingly fierce industry competition. Soochow Securities pointed out that Alibaba pays great attention to improving the efficiency of various business segments. Although large-scale investments may affect short-term performance, they help build long-term barriers. Taking into account the company's business growth, competitive advantages, and barriers, it is believed that the current valuation of the company has strong investment value. In addition, Goldman Sachs stated that it is expected that after Alibaba completes its primary listing in Hong Kong, it will pave the way for inclusion in the Stock Connect in early September, potentially bringing in USD 15 to 16 billion in net inflows