Zhao Yin Guo Ji·2025-07-07 02:06Macro Economic Overview - The US job market remains robust, with June non-farm payrolls significantly exceeding market expectations, leading to a drop in the unemployment rate. However, the job growth is primarily supported by seasonal government education positions, while private sector employment, especially in manufacturing and key service industries, has slowed considerably [2] - The Federal Reserve is expected to maintain a wait-and-see approach, with a reduced probability of interest rate cuts in the near term. Inflation is anticipated to slightly rebound from June to August before declining again in September [2] - The report indicates that the Chinese stock market showed mixed results, with Hong Kong stocks declining while A-shares rose, driven by sectors such as banking and public utilities [4] Company Analysis - Alibaba (BABA US) announced plans to issue HKD 12 billion in zero-coupon exchangeable bonds due in 2032 to support international business development. The proceeds will be used for general corporate purposes, including investments in cloud infrastructure and international business [5] - The issuance of these bonds is expected to help Alibaba quickly raise overseas funds for international expansion and increase the liquidity of Alibaba Health's shares upon conversion [5] - The report maintains a "Buy" rating for Alibaba with a target price of USD 155.5, reflecting a potential upside of 43% from the current price of USD 108.70 [6] Focus Stocks - Geely Automobile (175 HK) is rated "Buy" with a target price of HKD 24.00, indicating a potential upside of 48% from the current price of HKD 16.26 [6] - Xpeng Motors (XPEV US) is also rated "Buy" with a target price of USD 28.00, representing a 49% upside from its current price of USD 18.85 [6] - Luckin Coffee (LKNCY US) is rated "Buy" with a target price of USD 40.61, suggesting a 6% upside from the current price of USD 38.49 [6]