Alibaba shares soar 15% in Hong Kong on news of major overhaul
Publishing timestamp: 2023-03-28 21:48:31
Summary
Alibaba's Hong Kong-listed shares surged 15% after the company announced a significant overhaul to split the tech giant into six business groups, each with its own leadership and executive board. The move aims to "unlock shareholder value" and allows each unit to pursue independent fundraising and IPOs. The six business groups include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and Digital Media and Entertainment Group. The overhaul comes as Alibaba faces continued struggles with growth and Chinese government crackdowns on technology companies. The stock moves are more reflective of a sense of relief rather than investors' hopes in the business, according to value investor Guy Spier. The tech stocks in Hong Kong climbed in morning trade, and the moves seen in Alibaba's peers on Wall Street indicated that other Chinese technology companies could turn to similar measures for their business.
Sentiment: MIXED
Tickers: 9888-HK, BABA, 9618-HK, GMBL, BIDU, 700-HK,
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Source: https://www.cnbc.com/2023/03/29/alibaba-hong-kong-guy-spier.html