Alibaba-Linked Stocks Surge in Hong Kong—But Alibaba Itself Remains Weak
TkradingKey - During midday trading on Monday, rumors spread that Ant Group plans to apply for stablecoin licenses in both Hong Kong and Singapore. In response, Ant Group stated it will submit applications as soon as the relevant regulatory channels are open. Following the news, shares of Alibaba-affiliated stocks rose sharply in afternoon trading.
Among the gainers: Yunfeng Financial (00376.HK) surged over 60%, Lion Rock Holdings (02562.HK) gained nearly 16%, Yau Lee Securities (01428.HK) jumped more than 11%, and Alibaba Health (00241.HK) rose over 3%. In contrast, Alibaba (09988.HK) remained under pressure due to the fallout from an internal long-form essay posted by a former employee the previous day. The stock closed down more than 3.2%.
【Alibaba-W Intraday Chart, Source: TradingView】
Reports indicate that Ant Group processed over USD 1 trillion in global transactions last year, with around one-third handled through its blockchain platform Whale. On June 12, Ant International responded by stating that it is accelerating its global treasury management strategy, integrating AI, blockchain, and stablecoin technologies into large-scale real-world applications. It added that it would submit relevant applications promptly once local regulations in Hong Kong come into effect, aiming to support Hong Kong’s development as an international financial hub.
On Sunday, a widely circulated 10,000-word resignation letter from a former Alibaba employee sparked heated discussion across Chinese social media. The essay provided a deep analysis of the challenges currently facing the company and received a personal reply from founder Jack Ma, highlighting the serious difficulties Alibaba is encountering during its transformation phase.
The former head of product and R&D at DingTalk pointed out in the article that Alibaba’s past success stemmed from favorable market opportunities and Jack Ma’s strategic vision. However, since 2017, signs of fatigue have gradually emerged. As a result, many investors have become hesitant toward Alibaba, fearing further deterioration in performance.
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