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BABA-W Sags 2%+; Citi Says Mkt Concerns Over CN Planned RMB2T Data Center Investment May Be Premature
Recommend 56 Positive 86 Negative 38 |
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BABA-W (09988.HK) last quoted at HKD113.3, down 2.39%, with trading volume of 107 million shares, involving HKD12.017 billion. Citi said in a research report that, after Bloomberg reported China plans to invest about RMB2 trillion in data centers over five years to advance the domestic AI industry, shares of BABA-W weakened in the Hong Kong market. The market may be concerned that government-backed data centers could affect pricing and future investment returns of private hyperscalers. The broker believed such concerns may be premature and that the government investment should not be viewed as a "zero-sum game" with private hyperscalers such as BABA-W, TENCENT (00700.HK) and BIDU-SW (09888.HK). The broker considered government intervention is more likely aimed at promoting broader AI adoption, as many public enterprises and small and medium-sized enterprises may not be able to afford high token usage costs. Therefore, government-funded capacity will mainly serve SOEs and smaller firms. Citi reiterated its Buy rating on Alibaba Group Holding Limited (BABA.US), maintaining its target price at USD208. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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