HK Stock Market Move | BABA-W (09988) drops nearly 6% in the afternoon. The European Union fines AliExpress, a platform under Alibaba, 550 million euros.

BABA-W (09988) fell nearly 6% in the afternoon, dropping 4.79% as of the time of publication, to 109.4 Hong Kong dollars, with a turnover of 8.936 billion Hong Kong dollars. On the news front, on July 20, the European Commission announced a fine of 550 million euros (about 4.25 billion yuan) on Alibaba's global cross-border e-commerce platform AliExpress under the EU Digital Services Act (DSA), setting a record for the highest penalty since the implementation of the EU DSA. In response to this, the Chinese Ministry of Commerce expressed strong dissatisfaction and serious concern, firmly supporting Chinese companies in using legal means to safeguard their rights, and will take strong measures to protect their interests. It is worth noting that the stock price performance following the latest financial reports from Google and Tesla has confirmed that AI trading has transitioned from being "story-driven" to "cash flow validated". In the 2026 fiscal year, Alibaba recorded a free cash flow outflow of 46.609 billion yuan, marking the first time since the disclosure of financial data in the 2011 fiscal year that a free net cash flow has occurred. Alibaba's management previously revealed that capital expenditure over the next three years could exceed 380 billion yuan.