Chinese concept stock index soars over 4%; Alibaba ADS exceeds Hong Kong price by more than 6%

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Abstract generation in progress

Alibaba (09988) reported a 1.06-fold increase in quarterly profit year-on-year as of the end of March, while non-GAAP net profit plummeted by 99.71%, falling short of market estimates. However, executives in an analyst call expect that in the next year, revenue from artificial intelligence (AI)-related products will surpass 50%, becoming the main driver of Alibaba Cloud's revenue growth. Stimulated by the news, Alibaba's American Depositary Shares (ADS) surged on Wednesday, over 6% above the Hong Kong price, driving the NASDAQ China Golden Dragon Index to rebound more than 4%.

Alibaba ADS currently jumped 7.4%, to $144.71, equivalent to HKD 141.63, which is 6.6% higher than the Hong Kong closing price; Meituan (03690) up 6.3%, JD.com (09618) up 3.6%.

The Golden Dragon China Index latest reading is 7,297 points, up 4.1%. The ADR Hong Kong stock ratio index is currently at 26,910 points, 521 points or 1.98% higher than the Hong Kong market. The Hang Seng Index night futures are at 26,802 points, up 508 points, with a premium of 414 points.

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