A stock that until last week wasn’t covered by a single analyst has rallied 55 percent since May 16 for no apparent reason, generating more turnover than most of Hong Kong’s biggest companies.
The sudden gains have made Alibaba Health Information Technology Ltd. — a subsidiary of Chinese megacap Alibaba Group Holding Ltd. — easily the best performing stock on the MSCI Asia Pacific Index this month. Some $167 million worth of its shares exchanged hands in Hong Kong on Thursday, the most since 2015 and surpassing the likes of PetroChina Co. and Bank of China Ltd. Trading was almost twice as much as HSBC Holdings Plc. Those three giants are at least 20 times as valuable as the Alibaba unit.
Ali Health’s earnings report on May 16 showed a smaller loss and a surge in sales, triggering its biggest rally since 2015. The stock’s momentum shows no sign of abating, and what is sustaining the buying frenzy is something of a mystery. It’s been among the 10 most active stocks for investors based in Shanghai and Shenzhen through links with Hong Kong for almost every day this past week, where trading accounted for about half of turnover on its busiest days.
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