This week, the Hong Kong stock market experienced significant volatility, with the Hang Seng Index rising 1.41% for the week.

On the news front, after the market closed last Friday, Alibaba released its Q1 2026 fiscal year report, revealing revenue of 247.652 billion yuan, a 2% year-on-year increase; net profit reached 42.382 billion yuan, surging 76% year-on-year. Among these, cloud business revenue was 33.398 billion yuan, up 26% year-on-year, while AI-related revenue achieved triple-digit growth for the eighth consecutive quarter.

At the same time, instant retail business revenue reached 14.784 billion yuan, a 12% year-on-year increase, with daily order peaks exceeding 120 million orders, driving the revenue of China's e-commerce group back to double-digit growth.

Alibaba's E-commerce Business Group CEO, Jiang Fan, stated that flash sales would bring trillions in incremental transactions!

As a result, Alibaba's stock price soared 18.5% on Monday, marking its largest single-day gain in nearly two years and driving a collective rise in internet companies. The Hang Seng Index rose over 2% on Monday.

Subsequently, the Hong Kong and A-shares markets underwent adjustments, with star AI stocks falling sharply, dampening market sentiment. The Hang Seng Index declined for three consecutive days.

On Thursday, September 4, data released by ADP Research showed that US ADP employment increased by 54,000 in August, significantly lower than the market expectation of 68,000 and also noticeably slower than the revised July increase of 104,000.

As a result, expectations for a Fed rate cut intensified, and the S&P 500 hit a record high.

Meanwhile, Broadcom released its Q3 2025 fiscal year report, with performance and guidance exceeding expectations. Management stated that AI-related demand remains strong, with order volumes extremely robust. The stock price rose over 4.5% after hours, reaching a record high!

Driven by this, AI concept stocks surged on Friday, coupled with a collective rally in the lithium battery sector. The ChiNext Index surged 6.55%, reversing Thursday's major decline. This marked the first time in nearly a decade that the ChiNext Index achieved a "reversal" the day after a drop exceeding 4%.

Amid renewed optimism, the Hang Seng Index rose over 1.4% on Friday.

Sector-wise, the healthcare sector led gains this week, while the information technology sector underperformed.

Southbound capital recorded a net purchase of HKD 33.06 billion this week, with the cumulative net purchase for the year breaking the HKD 1 trillion mark.

Next week, China and the US will release key economic data such as August CPI and PPI, which are expected to significantly impact the stock market.