How did Alibaba’s market value surpass Tencent’s? How did Alibaba’s market value surpass Tencent’s?

How did Alibaba’s market value surpass Tencent’s? How did Alibaba’s market value surpass Tencent’s? Alibaba's total market value approaches HK$5.5 trillion

It's noon now, and it's time for everyone to take a break. Let's take a look at the situation of A-shares and Hong Kong stocks in the morning trading today.

In today's morning session, A-shares continued to rise. The Shanghai Composite Index fell back due to the correction of the financial sector. It fluctuated sharply during the session and turned green at one point. The Shenzhen Stock Exchange continued to rise strongly. The Shenzhen Component Index and the Small and Medium Enterprises Index rose for 8 consecutive days, both reaching a 5-year high. After breaking through 2,600 points yesterday, the ChiNext Index broke through the 2,700-point mark again today, and has risen by more than 51% so far this year. This morning, trading volume in the two markets exceeded one trillion again.

Yesterday's surge in Chinese stocks listed in the US indeed drove the related companies in Hong Kong stocks to continue to rise, among which Alibaba and NetEase were particularly obvious. Today, Alibaba's total market value approached 5.5 trillion Hong Kong dollars, surpassing Tencent. NetEase's Hong Kong stocks also soared nearly 10%, and its market value exceeded 500 billion Hong Kong dollars. In addition to the above-mentioned stocks, some new economy and technology companies such as Meituan and Xiaomi also saw significant increases.

In the A-share market, sectors such as shipping, new retail, medicine, and gold led the gains, while sectors such as banking, steel, and coal led the losses. The net inflow of northbound funds was nearly 8.4 billion yuan, of which the Shanghai-Hong Kong Stock Connect had a net inflow of 3.181 billion yuan and the Shenzhen-Hong Kong Stock Connect had a net inflow of 5.204 billion yuan.

In full bloom! Today these sectors surged

Let’s first take a look at which A-share sectors performed the best this morning.

Overnight, among Chinese stocks listed in the US, Alibaba surged 8.95% with its share price reaching US$257.68, a record high. Its market value surged by nearly US$60 billion overnight, equivalent to RMB 400 billion. The share price of another leading e-commerce company, JD.com, also continued to hit new historical highs. Last night, JD.com surged 6% and its market value exceeded US$100 billion.

Alibaba's Hong Kong stocks opened 7.15% higher and once surged to HK$257, setting a new high since its listing. The latest total market value is HK$5.46 trillion, surpassing Tencent to become China's largest company by market value. Alibaba's U.S. and Hong Kong stocks have both seen their largest gains since their March lows, exceeding 52%. In addition, NetEase's Hong Kong stock gains expanded to 10%, with its intraday share price continuing to hit a new historical high.

Driven by Alibaba and JD.com, the A-share new retail sector opened higher and closed higher today. As of midday close, the sector index rose 4.35%, hitting a two-year high, and half-day trading volume was close to yesterday's full-day trading volume. Nine stocks including Hangzhou Xiebai, Small Commodity City, Dingzhi Software, and Suning.com hit the daily limit, while Nanning Department Store, Biyinlefen, and Laiyifen were among the top gainers.

The gold price in New York broke through the 1,800 mark, reaching a high of $1,857, the highest level in nearly nine years and just one step away from the historical high of 1,925.1. Today, the main contract of gold futures on the Shanghai Stock Exchange opened high and continued to rise, reaching 406.26 yuan at one point, setting a new historical high.

The latest data released by the World Gold Council recently showed that the investment demand for gold continued to rise due to market concerns that a second outbreak of the new coronavirus pneumonia epidemic would trigger a new round of risks and uncertainties. In June, the total amount of global gold ETFs (exchange-traded funds) increased by 104 tons, with net inflows for seven consecutive months. The total holdings reached 3,621 tons, a new historical high. It has increased by 655.6 tons since the beginning of this year, exceeding the growth in the whole year of 2009.

Boosted by the surge in gold prices, the A-share gold sector also opened higher today and rose 3.85%, hitting a new high in more than two years. Zhongrun Resources, Yuyuan Group, Huayu Mining, Yuancheng Gold, and Yimin Group hit their daily limit, while Shengda Resources, Chifeng Gold, Zijin Mining and others were among the top gainers.

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China Securities Co., Ltd. recommends that investors remain rational when the market is overheated, and pay special attention to financing balances. When the market financing balance rises too much, try not to increase leverage and do not participate in off-market financing. Judging from the fundamentals, the recent market improvement is still supported by certain fundamentals. The macro data in June showed that there were obvious signs of economic recovery and the epidemic was under relatively good control. The fundamentals have indeed given the market a certain degree of confidence. Since the outbreak of the epidemic at the beginning of the year, the number of A-share accounts opened has increased significantly, and the subscription volume of public funds has also continued to increase. Capital is profit-seeking. When there are few opportunities or high risks in the real economy, a lot of funds will flow into the stock market.