Alibaba sees $2.1 billion in net flows during first week of Connect
- Asian equities generally rose, with Hong Kong posting small gains despite upcoming market closures.
- Mainland investors purchased a net $2.1 billion in Alibaba shares during the week, indicating strong demand.
- The mixed performance across sectors highlights ongoing market volatility and investor sentiment.
Asian equities experienced a generally positive trend, with most markets showing gains, except for Japan, China, and India, as the US dollar weakened against regional currencies. Hong Kong's market saw small gains, despite upcoming closures for the mid-autumn festival, which will affect trading on Wednesday and the Chinese stock market on Monday and Tuesday. This holiday period likely contributed to profit-taking in Alibaba, which saw a slight decline of 0.54%. Despite the market closures, Mainland investors continued to show strong interest in Alibaba, purchasing an additional HKD 1.32 billion (approximately $168 million) worth of shares, bringing the total net buy for the week to $2.1 billion. The company also reported acquiring 468,500 US ADRs, representing 4.3% of the total volume. This indicates a robust demand for Alibaba's stock, even amid market fluctuations. In Hong Kong, all sectors posted positive results, with notable gains in mega-cap banks and energy companies. However, some major players in the electric vehicle and liquor sectors experienced declines. The Hang Seng and Hang Seng Tech indexes recorded gains of 0.75% and 0.13%, respectively, although trading volumes were lower than average. The Southbound Stock Connect saw light volumes, with Mainland investors net buying $30 million in Hong Kong-listed stocks and ETFs, including Alibaba. The top-performing sectors included Utilities, Real Estate, and Technology, while Consumer Staples, Industrials, and Health Care faced declines. This mixed performance reflects the ongoing volatility in the market and investor sentiment.