[ET Net News Agency, 24 September 2025] US equities closed lower after Fed Chair Jerome
Powell flagged stretched market valuations. Despite the impact of Typhoon Ragasa, Hong
Kong markets remained open. The HSI opened at 26,073 and, benefiting from a stronger mood
in A-shares and outperformance from heavyweight tech stocks such as SMIC and Alibaba,
reversed early losses to trade higher. By midday, the HSI stood at 26,397, up 238 points
or 0.9 per cent, with SMIC and Alibaba together contributing 193 points to the index's
gain. Main board turnover exceeded HKD 150.9 billion. The Hang Seng China Enterprises
Index was at 9,394, up 104 points or 1.1 per cent. The Hang Seng Tech Index stood at
6,301, up 134 points or 2.2 per cent.

''Alibaba shines as top performer, HSI short-term bottom in place''

US equities declined overnight, with the Dow giving up intraday highs to close lower. The
HSI opened slightly weaker but quickly rebounded, led by heavyweight Alibaba (09988).
Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and
Professional Commentators Limited, told ET Net News Agency that after hitting a year-high
above 27,000 last week, the HSI saw profit-taking. However, the index found technical
support near the middle band of the Bollinger Channel (around 25,950). Tsang noted that
the HSI has climbed steadily from about 19,260 in April to the recent high of 27,058. With
Mainland China's unwavering push into AI and domestic chip production, capital continues
to favour these sectors. As a result, the HSI has solid support at the 26,000 level.
Provided there is no major correction in the US market, Tsang expects the HSI to continue
trending higher, with potential to surpass this year's high and target 27,200.

''Brand effect drives Alibaba rally, but chasing at current levels carries risks''

Dubbed the ''Queen of Tech Stocks'', Ark Investment CEO Cathie Wood has reopened a
position in Alibaba (09988) for the first time in four years. Ark's daily trading report
shows two of its ETFs bought Alibaba ADRs on Monday (22nd), with a combined position
valued at around USD 16.3 million.
Meanwhile, at the Alibaba Cloud Summit, Alibaba Cloud unveiled several new models
including Qwen3-VL. CTO Zhou Jingren revealed that Tongyi Wanxiang has now generated over
390 million images and 70 million videos. To date, Tongyi Qianwen has released over 300
open-source models covering all sizes and modalities, with cumulative downloads exceeding
600 million.
Alibaba Director and CEO Wu Yongming stated that large models are the next-generation
operating system, and that AI cloud is the next-generation computer. He suggested that in
future, there may only be five or six global supercloud platforms. Alibaba is now
aggressively developing RMB 380 billion worth of AI infrastructure, with plans for further
investment. Looking ahead to the era of ASI, compared to 2022, the first year of GenAI,
Alibaba Cloud's global data centre power consumption is set to increase tenfold by 2032.
Wu expects there will eventually be more AI agents and robots than humans, creating
profound real-world impact.
Alibaba shares have surged recently, gaining another 6 per cent today and contributing
157 points to the HSI, making it the largest single contributor. Tsang noted that Cathie
Wood's buying has set off a brand effect, and with Mainland China ramping up investment in
AI and chips, Alibabam, as a sector leader, naturally attracts foreign capital. While
recent China-US leader-level calls suggest no major deterioration in bilateral economic
ties, the US is expected to maintain pressure on China's high-tech sector. This means
China must accelerate its AI and chip ambitions to keep pace with the third industrial
revolution, and Alibaba is well-placed in terms of capital and talent. The outlook remains
positive, but Tsang cautioned that after such a sharp rally, chasing Alibaba at current
levels carries risks. With many investors still underwater from the HKD 190-200 level four
to five years ago, it would be safer to wait for those positions to be digested and
consider buying after the price consolidates closer to HKD 150.