HK Stock Market Move | MEITU (01357) rose more than 7% in the morning session. The recent strategic cooperation with Alibaba has shown results after the company increased its overseas investment.

MEITU (01357) rose more than 7% in early trading. As of the time of writing, it is up 5.33%, trading at 8.1 Hong Kong dollars with a trading volume of 5.16 billion Hong Kong dollars. On the news front, on May 20th, MEITU announced a $250 million convertible bond agreement with Alibaba. Alibaba will invest in Meitu in the form of convertible bonds, with a term of 3 years, an annual interest rate of 1%, and the option to convert to MEITU stock at a price of HK$6 per share within 5 days before the maturity date (if all bonds are converted, Alibaba will become one of the major shareholders with a stake of approximately 6.85%). The two parties will also engage in strategic cooperation in e-commerce platforms, AI technology, cloud computing, and other areas. Shenwan Hongyuan Group released a research report stating that since the second half of 2018, Meitu has increased its investment, established offices in multiple overseas locations, recruited overseas employees, and expanded its business backbone into overseas markets. The release of popular AI functions such as "AI Hairstyle" and "AI Makeup" has driven Meitu's overseas monthly active users back into a growth trajectory. The success of Meitu's consumer-facing products overseas is the result of technological advancement, cultural resonance, and localized operations. BeautyCam and Meitu have gained traction overseas. Furthermore, foreign toB products have also been launched, as part of the long-term strategy.