Shares of the Hong Kong tech giant rose more than 16%. The combined value of the group may now be around $530 billion.
News of Chinese Alibaba Group’s reorganization sent its stock price soaring and its market value increased by more than $30 billion. This was reported on March 29 by Bloomberg.
It is noted that the Chinese online trading leader surprised the markets by announcing plans to split his $220 billion empire into six divisions earlier in the day.
In its biggest overhaul in its history, Alibaba is trying to solve two problems that have eluded many of its competitors – soothe both the government’s distrust of big companies and investors traumatized by years of repression. in regulation.
The tech giant’s shares rose more than 16% in Hong Kong, slightly higher than in New York, adding $32 billion to its market value. Morgan Stanley estimates that Alibaba Group’s combined value could now be as high as $530 billion.
It is emphasized that the move to a holding company structure is rare for large Chinese technology companies and could become a model, for example, for WeChat operator Tencent.
Chinese President Xi Jinping’s administration has long criticized the influence of online platforms, fearing that the concentration of power and data among a few technology companies stifles innovation and threatens the ruling regime.
It can be recalled that Alibaba’s announcement about the reorganization coincided with the return of its founder, Jack Ma, to China after more than a year abroad.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.