JP Morgan maintains Alibaba-SW (09988) "overweight" rating with a target price of HKD 106.

J.P. Morgan released a research report stating that it maintains an "overweight" rating on Alibaba-SW (09988), expecting the traffic, gross merchandise volume (GMV) and monetization of Taobao and Tmall to continue improving in the coming quarters, with technological catalysts emerging. The target price is 106 Hong Kong dollars. Alibaba was officially included in the Stock Connect on Tuesday (10th), and its Hong Kong stock price rose by 4% on the same day, compared to the Hang Seng Index's 0.2% increase. It received a capital inflow of 8.4 billion Hong Kong dollars, accounting for 90% of the total southbound inflow that day. Its trading volume doubled to 16.9 billion Hong Kong dollars, representing approximately 15% of the total trading volume of 107 billion Hong Kong dollars in the Hong Kong stock market that day. The report states that although the full impact of Alibaba's inclusion in the Stock Connect and the southbound capital inflow may take several months to materialize, the bank believes that Alibaba's fundamental development in the domestic e-commerce market will be a key driver of its stock price in the next 6 to 12 months.