What Is MUNITY

On August 24, according to the Shanghai Securities Journal, Alibaba announced the completion of its new share placement pricing at HKD 80 billion (approximately USD 10.2 billion), with the net proceeds to be used 100% for investing in full-stack AI capabilities and strengthening AI infrastructure. According to sources close to the transaction, the placement was nearly 3 times oversubscribed, exceeding HKD 200 billion. Sovereign and long-term funds accounted for over 40% of the final subscriptions, reflecting strong demand and high order quality. The clear return path of Alibaba's AI investments has garnered trust from global long-term capital for this placement. Major sovereign funds from regions such as the Middle East, Europe, and Asia actively participated in the subscription.

On August 24, Alibaba announced on Sunday its plan to place new shares in Hong Kong. The company stated that the total amount for this placement is HKD 80 billion (USD 10.2 billion). This transaction will become the largest primary follow-on offering ever for a company listed in Hong Kong. Following this news, Alibaba's stock opened lower and continued to decline, with a maximum intraday drop of over 10%, narrowing to a 9% decline. The Hang Seng Index was dragged down by this, falling 1.9% during the day, while the Hang Seng Tech Index dropped 3.58%. Additionally, 'big short' Michael Burry updated his views on Alibaba on the X platform. Burry mentioned that he had swapped his Alibaba holdings for JD.com a few months ago. 'Because issuing stock is now Alibaba's new normal. I won't consider it again unless the stock drops by half from here.'

On August 24, Nick Timiraos, a Wall Street Journal reporter known as the 'voice of the Federal Reserve,' pointed out that Waller's silent reform at the Fed is not accidental. He has consistently criticized the core communication tools introduced by the Fed since 2012, namely the 'dot plot' and economic forecast summaries. Timiraos noted that many on Wall Street cheered for Waller due to his 15-year history, viewing him as a natural inflation hawk. However, the meeting minutes and quarterly forecast data released years later indicate that his understanding of the causes of inflation is quite atypical. His logic relies less on traditional demand-side indicators like unemployment rates and is deeply rooted in supply-side factors and government policies. During the aftermath of the 2007-2009 financial crisis, Fed colleagues generally viewed the high unemployment rate of 9% as an effective means to suppress prices through economic idle capacity. Waller, however, recognized permanent structural damage. He pointed out that capital failed to flow to the most efficient production areas, the labor market lost its ability to adjust, and unpredictable policies from Washington exacerbated the situation. If unemployment is structural rather than temporary, it cannot constrain prices. Timiraos stated that, in hindsight, Waller's pessimistic predictions about economic growth potential have partially come true. As he warned, increasingly tightening regulations, fiscal, and trade policies have become detrimental to growth, undermining the economy's productive capacity. A shrinking economy reaches its capacity limits more quickly, making it more susceptible to external inflation shocks. However, the inflation crisis he warned about was delayed by a full decade. Now, with decision-making power, Waller faces a macroeconomic environment that is entirely different from that of years past. After five years of 'excess' inflation, he must assess economic trends amidst a wave of technological shocks whose scale no one can accurately predict. Over the past year, he has suggested that AI-driven technological advancements could provide greater growth space for the economy, and that technology often reduces costs over time. Last month, when asked how to interpret the current economy, he described the same core issue he faced 15 years ago. Waller admitted, 'We are inferring total supply. We are making judgments about what productivity is.'