Dolphin Research
2025.07.04 08:40

Alibaba plans to issue zero-coupon exchangeable bonds; U.S. markets closed tonight | Today's Important News Recap

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0704 | Dolphin Research Key Focus:

🐬 Macro/Industry

1. The U.S. non-farm payrolls for June, seasonally adjusted, were 147,000, significantly higher than expected, with the unemployment rate unexpectedly dropping to 4.1%. As a result, the three major U.S. stock indices opened higher and continued to rise last night, with the S&P 500 and Nasdaq Composite Index reaching new all-time highs, while gold plummeted. Traders abandoned bets on a Federal Reserve rate cut in July.

2. U.S. President Trump reiterated that he will send letters regarding tariff rates to trade partners starting Friday (July 4th), but refused to disclose which countries will receive the letters from Friday. Trump stated that by July 9th, "it will be comprehensive, with tariff rates possibly ranging from 60%-70% to 10%-20%."

3. The U.S. House of Representatives passed the Trump administration's "Big and Beautiful Act" legislation by a narrow margin of 218 to 214 votes, sending it to the President for signing before the July 4th deadline set by Trump. Trump plans to sign the bill at a ceremony at 4 PM on Friday at the White House, marking a major shift in U.S. domestic policy direction. The tax cut policy may stimulate economic growth but could also increase the fiscal deficit, requiring attention to its long-term impact on market confidence and economic fundamentals.

4. July 4th is Independence Day in the United States, and U.S. stock markets will be closed.

🐬 Individual Stocks

1.$Alibaba(BABA.US)

Alibaba plans to issue approximately HKD 12 billion in zero-coupon exchangeable bonds to support the development of the company's cloud infrastructure and international business. This move demonstrates Alibaba's emphasis on overseas expansion and cloud computing business. By raising funds through bond issuance, the company can accelerate its layout in the cloud computing field and enhance competitiveness. Attention should be paid to the impact of bond issuance on the company's financial structure, as well as the profitability and market prospects of the cloud computing business.

2.$XPeng(XPEV.US)

Last night, XPeng held the launch event for the XPeng G7, officially announcing the price of the G7, with three versions priced between 195,800 and 225,800. Although a large order volume of 10,000 units was announced within 9 minutes of the launch, the actual order volume so far has slightly underperformed expectations. According to the XPeng official app, the waiting time for the G7 602/702 versions is approximately 2-4 weeks (compared to the waiting period of 13-17 weeks for the Mona M03 and 7-10 weeks for the P7+ upon launch), implying that the current order volume for the G7 is relatively average. As of today's market close, the Hong Kong stock fell by 6.6%. Additionally, since the XPeng G7 is primarily a family car, attention should be paid to whether there is a significant upward trend in actual orders after weekend test drives. Dolphin Research has compiled the minutes and commentary, see "XPeng G7: Pricing Exceeds Expectations, Can 'AI Car' Create Another Hit?"

🐬 Leading Sectors

Shanghai and Shenzhen: Video Games and Multimedia, Distributors, Trading and Payment Services;

Hong Kong Stocks: Cloud and Data Centers, Semiconductor Materials and Equipment, Electrical Components and Equipment;

U.S. Stocks: Marine Ports - Operators, Cloud and Data Centers, Security and Alarm Services.

🐬 Focus for Next Monday

1. China's Foreign Exchange Reserves.

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