BABA(HK:09988) Zhong Jin Zai Xian·2025-10-03 01:57Core Viewpoint - The Hang Seng Tech Index has reached a new high since November 2021, indicating strong market sentiment towards tech stocks, particularly in the context of increasing investments in AI by major Chinese companies [1][4]. Group 1: Index Performance - The Hang Seng Tech Index surged to 6618.84 points, marking a 2.62% increase to 6635.30 points at the time of reporting [1]. - Notable individual stock performances include Kuaishou-W (01024.HK) rising by 7.39% to 90.85 HKD, with a 5-day increase exceeding 20% and a year-to-date increase of 120% [2]. - Alibaba-W (09988.HK) saw a 4.29% rise to 184.60 HKD, with a year-to-date increase over 120% and a 20-day cumulative increase of over 35% [2]. Group 2: Company Insights - Baidu Group-SW (09888.HK) increased by 3.60% to 138 HKD, with a 5-day increase of 6.84% and a 20-day increase of 46.17% [3]. - Analysts from Guosen Securities noted that the valuations of Hong Kong internet giants are converging with their overseas counterparts, with Tencent and Meta, as well as Alibaba and Google, reaching similar valuation levels [4]. - Morgan Stanley raised Alibaba's target price to 240 HKD, citing a continuous acceleration in Alibaba Cloud's revenue growth, driven by demand in generative AI across various sectors [4]. Group 3: Market Sentiment and Investment Trends - There has been a consistent inflow of southbound funds into the Hong Kong tech sector, with net inflows for 18 consecutive weeks [6]. - Alibaba-W has been particularly favored, with a net purchase of 16.305 billion HKD this week, bringing its total holdings to 1.994 billion shares, a historical high [6]. - Analysts recommend investing in companies like Alibaba, Tencent, and Kuaishou, as the shift towards generative AI is expected to be a critical period for valuation restructuring in Hong Kong tech stocks over the next 12-36 months [6].