Alibaba shares rise after Ant Group receives approval for capital plan
Shares of Alibaba listed in Hong Kong rose 7.11% in Wednesday’s morning trade – after China’s Banking and Insurance Regulatory Commission approved a plan for Ant Group’s capital expansion plan for its consumer financial unit based in Chongqing.
According to a notice posted last week, Chinese regulators gave the greenlight to billionaire Jack Ma’s financial technology firm to raise 10.5 billion yuan ($1.5 billion).
Ant Group is an affiliate of Alibaba in which the e-commerce giant owns 33%. Ant Group runs the Alipay mobile payments wallet in China. Alibaba’s shares rose 2.78% on Tuesday, the first trading session after the notice was posted.
Other companies named in the notice included Hangzhou Jinto Digital Technology Group, Nanyang Commercial Bank, Zhejiang Sunny Optical and China Huarong Asset management.
The approval marks progress in the state-led regulatory overhaul of the fintech giant.
ALIBABA TECHNICAL ANALYSIS DAILY CHART:
In daily chart Alibaba is currently trading in up channel. It is currently trading above all SMA.
RSI is in buying zone which shows bullishness. And stochastic is suggesting up trend.
Alibaba immediate support level is at 91.52 & resistance level is at 100.55
HOW TO TRADE IN THIS WEEK
Alibaba is trading in up channel; it will continue to trade upside until any trend reversal. So, remain bullish on it.TRADE SUGGESTION: BUY AT 94.90, TARGET AT 100.65, SL AT 91.52