Alibaba announced on August 23 its intention to place approximately 710 million new ordinary shares, aiming to raise about HKD 80 billion (approximately USD 10.2 billion) at a placement price representing an 8.4% discount to its previous Hong Kong closing price. Affected by this news, Alibaba's Hong Kong stocks came under pressure today (24th), falling over 8%. Nomura analysts estimate that this share placement will dilute existing shareholders' equity by approximately 3.7%, deeming the dilution "manageable" and not altering their positive investment thesis for the company. The report points out that the global AI capital expenditure boom has driven up bond issuance costs, making debt financing less attractive, which is a key reason for Alibaba's choice of equity financing. Nomura believes that this share placement will help alleviate market concerns about the company's long-term financing uncertainty and emphasizes that all proceeds will be invested in full-stack AI capability building.