HK Stock Market Move | BABA-W(09988) fell more than 4% in early trading. WeChat e-commerce ushered in a major catalyst, suppressing the valuation of e-commerce platforms due to industry competitive landscape.

BABA-W (09988) fell more than 4% in the morning session, and as of the time of drafting, it has fallen by 3.5% to HK$80, with a turnover of HK$52.08 billion. On the news front, WeChat Mini Program has started the grayscale testing of the "gift giving" feature. It is reported that WeChat Mini Program, as an important new member of Tencent's e-commerce layout, was first included in Tencent's financial report in the third quarter of 2024 after announcing an upgrade in August 2024. Tianfeng believes that the gift giving feature of WeChat Mini Program will significantly accelerate the entry of merchants and cultivate user consumption habits, and the optimistic situation may replicate the story of WeChat red packets driving changes in the payment market landscape. With major holidays coming up at the end of December, WeChat e-commerce is expected to see significant catalysts. Minsheng Securities previously pointed out that the industry competition landscape is the main factor suppressing the valuation of e-commerce platforms. During the rapid development stage of Pinduoduo and Douyin e-commerce, Taobao's market share has continued to be under pressure, with its market share among mainstream e-commerce platforms falling from 60.3% in 2020 to 40.1% in 2023. The industry is no longer pursuing price competition, and the industry competition landscape is showing a trend of stability.