Shares soar as the company splits into six units and explores fundraisings or listings, potentially paving the way for other Chinese tech giants to follow suit
The logo of Alibaba Group is seen at its office in Beijing on January 5 2021. Picture: REUTERS/THOMAS PETER
The group’s Hong Kong-listed shares jumped as much as 16.3%, tracking a 14.3% rally in its US-listed shares overnight, leading the benchmark Hang Seng index and broader markets in the region higher. Alibaba said on Tuesday it would split into six units — Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.
The person said there would be five initial public offerings from the units, while Taobao and Tmall, Alibaba’s core revenue drivers, would remain with the current listed entity.initial public offerings , said the person, and a separate source familiar with Chinese tech companies’ capital markets transactions.In Japan, SoftBank, which has a 13.7% stake in Alibaba, shot up 6%. SoftBank did not respond to a request for comment.
In what many observers viewed as symbolic of the regulatory chill, Ma, its founder, left China in late 2021 and was seen travelling to a number of different countries.Zhang Zhihua, chief investment officer at Beijing Yunyi Asset Management, said that on top of Ma’s return and the restructuring, new leadership and local governments have recently softened their stance towards China’s private sector, giving investors confidence.Tencent, China’s largest gaming company, saw shares rise as much as 5.
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