Alibaba's HK shares surge 16pc on split-up plan
Hong Kong shares of Alibaba Group soared on Wednesday, marking a vote of confidence from investors after the company announced a major restructuring plan. The stock jumped as much as 16.3 percent to HK$98, its highest since February 21, on course to snapping three consecutive sessions of losses and tracking a 14.3 percent rally in its US-listed shares overnight. The restructure, which was announced on Tuesday, has helped boost investor confidence in the wider mainland tech sector, which has been affected by tightening regulations in recent years. Shares of Alibaba's e-commerce rival JD.com Inc were up seven percent, and gaming giant Tencent Holdings jumped five percent on Wednesday morning. That compared with a 2.3 percent jump in benchmark Hang Seng Index. In Japan, Softbank Group, a major shareholder in Alibaba, also shot up six percent. Alibaba said on Tuesday it would re-organise into a holding company structure, with Daniel Zhang retaining his position as group CEO, and six sub-divisions each with their own CEOs and boards. The revamp is the most significant restructuring in the company's history. One day before the re-organisation was announced, Alibaba founder Jack Ma, who had been out of mainland since late 2021, was spotted visiting a primary school in Hangzhou, the city where Alibaba is headquartered. (Reuters)