In today’s briefing:
- Alibaba’s $53 Billion Bet on an AI and Cloud Expansion Windfall
- STAR Chip Index Rebalance: Shenzhen Bluetrum (688332) Replaces JoulWatt (688141)
- March Key Events in Asia-Pac: Tariffs, Rates, Earnings, and Indices in Focus
- China Healthcare Weekly (Mar.2) – NewCo Model, Pfizer-Summit Deal, Henlius to Enter HK Stock Connect
- [Trip.com (TCOM US, BUY, TP US$74) Review]: Steady Domestic Supports for Venturing in Overseas
- Macro Vol Monthly – March: Weakness Could Continue into Mid-March
- Monthly Air Cargo Tracker | January: Soft Demand, Low LFs | Ocean Growth > Air Growth (March 2025)
Alibaba’s $53 Billion Bet on an AI and Cloud Expansion Windfall
- Alibaba Group Holding Ltd. is making a record-breaking bet on artificial intelligence (AI) and cloud computing, announcing on Monday that it will inject more than 380 billion yuan ($53 billion) into cloud and AI infrastructure over the next three years — more than its total capital expenditure over the past decade.
- The Chinese tech giant said in a statement that the investment marks the largest private-sector commitment to cloud and AI hardware in China.
- Since its 2014 initial public offering, Alibaba’s total capital expenditures from 2015 to 2024 have amounted to approximately 376 billion yuan.
STAR Chip Index Rebalance: Shenzhen Bluetrum (688332) Replaces JoulWatt (688141)
- CSI announced the changes for the March rebalance after market close on 28 February and the changes will be effective after the close of trading on 14 March.
- As expected, Shenzhen Bluetrum Technology (688332 CH) will be added to the index while JoulWatt Technology Co (688141 CH) will be deleted.
- Shenzhen Bluetrum Technology (688332 CH) outperformed JoulWatt Technology Co (688141 CH) in the last quarter of 2024 and there has been a reversal of fortunes this calendar year.
March Key Events in Asia-Pac: Tariffs, Rates, Earnings, and Indices in Focus
- Several US tariffs are expected in March, but their implementation remains uncertain and is part of ongoing negotiations.
- Central banks in India, Japan, and the US will announce rate decisions in March, with India possibly cutting rates by 0.25%.
- Major HK stocks are set to announce earnings in March, and index changes will occur in the S&P 500, Nifty 50, S&P/ASX 200, and HSCEI indices.
China Healthcare Weekly (Mar.2) – NewCo Model, Pfizer-Summit Deal, Henlius to Enter HK Stock Connect
- The NewCo model can be considered as an “intermediate state” for Chinese biotech companies when they hopes to enter overseas markets, rather than a real success in internationalization.
- After the announcement of Pfizer-Summit cooperation, share price of Summit plunged. Pfizer is clearly the beneficiary. The possibility of Summit being acquired could be reduced, which make investors unhappy.
- Shares of Henlius surged. Thanks to Lin Lijun’s dissenting vote, investors have the opportunity to profit at a higher price.Next goal is to be included in Hong Kong Stock Connect.
[Trip.com (TCOM US, BUY, TP US$74) Review]: Steady Domestic Supports for Venturing in Overseas
- TCOM reported C4Q24 revenue 5.4%/3.6% higher than our estimate/consensus, and non-GAAP operating profit 11.2%/6.2% higher than our estimate/consensus, supported by strong domestic travel rebound;
- Even though C1Q25 margin guidance was soft due to commitment to overseas expansions and a couple of one-time events affecting outbound,
- We keep the stock as BUY rating and keep TP at US$74/ADS.
Macro Vol Monthly – March: Weakness Could Continue into Mid-March
- Monthly deep-dive into price and vol metrics across Asian indexes as well as macro assets.
- Provides an in-depth look at the current state of the markets as well as how volatility and price are likely to unfold for March.
- HSI, Nifty, SP500, SPASX200 and Gold are all highlighted as having tradeable patterns in March.
Monthly Air Cargo Tracker | January: Soft Demand, Low LFs | Ocean Growth > Air Growth (March 2025)
- January air cargo activity moderated; timing of LNY holiday also made for tough comps
- January Int’l air cargo tons at US gateways grew far less than inbound (ocean) TEUs
- Data from Asian carriers & US gateways indicates low utilization, softening growth
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