Jefferies: Alibaba can benefit from the performance of Ali Health's stock price, and Alibaba's ability to issue bonds may help reduce financing costs.

Alibaba announced its plan to issue HK$12 billion zero-coupon convertible bonds, which can be fulfilled by delivering Alibaba Health shares. Jefferies said that considering Alibaba Health's strong stock performance this year, the financing cost of this issuance is expected to be relatively low. Analysts Thomas Chong and others stated in their report that Alibaba currently holds about 64% of Alibaba Health's equity, and Alibaba Health's stock price has risen by about 40% since the beginning of the year, which helps to reduce financing costs. The benchmark interest rate for Hong Kong dollar-denominated convertible bonds is lower than that of the US dollar, making the financing more advantageous.