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TOKYO, April 13 (Reuters) - Japanese technology investor SoftBank Group Corp (9984.T) has moved to sell almost all of its remaining shares in Alibaba Group Holding Ltd (9988.HK), , the Financial Times reported, sending the Chinese e-commerce major's stock tumbling. Alibaba, one of the most valuable assets in SoftBank's portfolio, tumbled as much as 5.2% in Hong Kong after the report before paring the loss to 2.8%. SoftBank has been seeking ways to monetise its stake in Alibaba, which the Japanese conglomerate bought into more than two decades ago with just $20 million spending. On Wednesday, the FT said forward sales based on filings at the U.S. Securities and Exchange Commission showed SoftBank's Alibaba stake would eventually fall to 3.8% from almost 15%. The Japanese group, led by billionaire founder Masayoshi Son, has sold about $7.2 billion worth of Alibaba shares this year through prepaid forward contracts, the newspaper said.

With that out of the way, Zhang is cleared to focus on Alibaba's massive corporate overhaul unveiled last month. Current shareholders will be left with a holding company led by Zhang, plus Alibaba's cash-cow Chinese commerce business. After all, Alibaba's U.S. shares are down over 60% in the past two years, while the S&P 500 has stayed largely flat. The sales will eventually reduce SoftBank's stake in Alibaba to 3.8%. In 2022, SoftBank booked a gain of $34 billion by cutting its stake in Alibaba to 14.6% from 23.7%.

☆ Alibaba shares tumble after SoftBank reportedly sells most of its stake
▼ + stars: | 2023-04-12 | by ( Jonathan Vanian | ) www.cnbc.com time to read: +2 min

Alibaba Cloud, the cloud computing subsidiary of Alibaba, unveiled its ChatGPT-style product Tongyi Qianwen during the 2023 Alibaba Cloud Summit on Tuesday morning. Alibaba shares dropped nearly 3% in after-hours trading after regulatory files revealed that SoftBank has sold a majority of its stake in the company. SoftBank has sold roughly $7.2 billion worth of shares in the Chinese ecommerce giant via prepaid forward contracts, according to an analysis of the corporate filings by The Financial Times, published on Wednesday. Because of the sales, the report noted that SoftBank will now only maintain a 3.8% stake in Alibaba, which has a market cap over nearly $250 billion. It was only about three years ago that SoftBank maintained a nearly 25% stake in the tech giant worth over $100 billion.

The flow may be signalling a shift in sentiment among foreign investors who have been notably absent while China's markets and economy roared back to life after Beijing abruptly lifted its stringent zero-COVID policy in December. Alibaba's shares (9988.HK) are up more than 14% in the five days since the company's announcement and some 11.7 billion yuan ($1.7 billion) in foreign cash has flowed into China's markets. That's already more than the net 9.2 billion yuan in inflows in February and drove March flows to 35.4 billion yuan and the quarter's inflow to a record of 186 billion yuan. Premier Li Qiang assured foreign investors that China would unswervingly adhere to reform and opening up, expanding market access and optimising the business environment. Ernest Yeung, a portfolio manager at U.S. asset manager T. Rowe Price, anticipated "a gradual process of stabilisation" of private enterprises and the internet sector.

☆ Slower China factory activity growth challenges economic recovery prospects
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +4 min

China's economic activity picked up in the first two months of 2023 as consumption and infrastructure investment drove a recovery after the end of COVID-19 disruptions and retail sales swung back to growth. "However, amid rapidly worsening geopolitical tensions and financial concerns outside of China, this may not last long," they added in a note. While business and consumer sentiment is starting to pick up, the manufacturing sector remains under pressure amid sluggish global demand and stubbornly high costs. Any fallout from a recent crisis of confidence in the global banking sector could also affect demand for China's goods, adding to pressure on manufacturers. Factory activity was hit by slowing growth in production and customer demand, with the output and new orders sub-indexes showing declines from February's levels.

☆ Google giggles at China tech’s shrinking act
▼ + stars: | 2023-03-31 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +3 min

HONG KONG, March 31 (Reuters Breakingviews) - As an $18 trillion economy home to 1.4 billion people, China is a natural font of statistical superlatives. The country’s internet giants, however, are dwarfed by American colossi like the $1.3 trillion Google owner Alphabet (GOOGL.O). Access to cheap capital helped founders like Alibaba’s Jack Ma quickly diversify and build sprawling empires with global ambitions. Meanwhile, the top eight U.S. tech names, led by Apple (AAPL.O), Microsoft (MSFT.O) and Alphabet, are worth $8 trillion today. The American tech giants already generate three times more revenue and nearly five times more free cash flow than their aspirant Chinese challengers, Refinitiv Eikon data shows.

☆ Jack Ma Engineered Alibaba’s Breakup From Overseas
▼ + stars: | 2023-03-30 | by ( Jing Yang | Shen Lu | ) www.wsj.com time to read: 1 min

HONG KONG—Chinese billionaire Jack Ma was orchestrating from overseas the corporate breakup of the e-commerce empire he built, Alibaba Group Holding Ltd. , according to people familiar with the matter. Despite having stepped down as executive chairman of Alibaba in 2019, Mr. Ma remained an influential figure at the company and is active in deciding its strategy, the people said. In recent months, he held calls with Alibaba’s top executives, including the current chairman and chief executive Daniel Zhang , urging them to split up the company, saying it would make it more nimble and competitive in China’s increasingly crowded market, the people said.

☆ Alibaba restructuring to enhance decision-making, CEO says
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

[1/3] Trader works at the post where Alibaba is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 28, 2023. REUTERS/Brendan McDermidSHANGHAI/HONG KONG, March 30 (Reuters) - Alibaba Group's (9988.HK) restructuring will allow all its business units to become more agile and enhance faster decision-making and responses to market changes, the tech conglomerate's chief executive Daniel Zhang said on Thursday. The restructuring also opens up the possibility for each unit to raise funds through its own initial public offering (IPO). Some analysts say Alibaba is currently undervalued as a standalone conglomerate and a breakup would allow investors to value each business division independently. The restructuring could also better protect Alibaba shareholders from regulatory pressures, as penalties levied on one division in theory would not affect the operations of another, analysts says.

☆ Boao Forum: Li Qiang says China 'confident and capable' of hitting 2023 growth targets
▼ + stars: | 2023-03-30 | by ( Laura He | ) edition.cnn.com time to read: +4 min

The forum often promotes itself as “Asian Davos” and Li is tasked with reviving the world’s second largest economy at a time of sluggish growth. China, he said, will roll out new measures to boost domestic consumption and increase market access for foreign business while ensuring the stability of the financial sector. (Photo by AFP) / China OUT (Photo by STR/AFP via Getty Images) Stringer/AFP/Getty ImagesThe Boao Forum for Asia has been held annually since 2001, but was suspended in 2020 because of the pandemic. But the problems have been exacerbated by the Communist Party’s erratic and draconian zero-Covid policy, which ended late last year, and a sweeping crackdown on private business. To boost business confidence, China’s new economic leadership is trying to reassure both foreign business and the domestic private sector.

☆ Wall Street is bullish on Alibaba's overhaul with Morgan Stanley expecting the stock to double
▼ + stars: | 2023-03-30 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

This move has attracted positive sentiment from major Wall Street banks, with Morgan Stanley saying that this restructuring could lead to a 100% upside in Alibaba's share price. Alibaba shares closed 15% higher Wednesday in Hong Kong, after trading higher by a similar amount on the NYSE on Tuesday. Morgan Stanley said that Alibaba shares, listed in the U.S. as BABA , are trading at a significant discount to their sum-of-the-parts valuation, and the restructuring could unlock this value. Nearly all of the valuation comes out of Alibaba's massive e-commerce and retail operations, according to Morgan Stanley. Morgan Stanley analysts led by Gary Yu wrote in a note to clients on Mar.

☆ After a more than $1 trillion rout, Beijing appears to be warming to Chinese tech giants
▼ + stars: | 2023-03-30 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

In this article BABA Follow your favorite stocks CREATE FREE ACCOUNTwatch nowBeijing's regulatory crackdown on the Chinese tech sector began in late 2020, wiping off more than a combined $1 trillion from the country's biggest companies. There are now signs that the central government is softening its stance towards internet titans like Alibaba , in a move that could prove positive for Chinese tech stocks. Jean Chung | Bloomberg | Getty ImagesIn addition to warming to the domestic tech sector, China is also courting foreign business. To achieve that, it will need the help of private businesses — including the tech sector. Is China tech out of the woods yet?

☆ Alibaba's breakup lifts hopes China's regulatory winter is thawing
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +6 min

The move represented a light at the end of the tunnel for many investors who had seen a wave of regulatory blitzes as a major cloud hanging over China's private sector. Reuters GraphicsAlibaba 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. He was spotted on Monday in Hangzhou, home to Alibaba, just one day before the company announced the restructuring. Tencent Holdings Ltd (0700.HK), China's largest gaming company, saw shares rise as much as 5.1%. Alibaba's split may pave the way for other Chinese tech giants to undergo similar restructuring, CMC Markets analyst Tina Teng said.

☆ Alibaba's breakup plan lifts hopes China's tech crackdown is ending
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

The group's Hong Kong-listed shares jumped as much as 16.3%, tracking a 14.3% rally in its U.S.-listed shares overnight . Its e-commerce rival JD.com Inc (9618.HK) rose 7% and gaming giant Tencent Holdings Ltd (0700.HK) gained 5%. That compared with a 2.3% jump in benchmark Hang Seng Index (.HSI) and a 3.2% gain for the Hang Seng Tech Index (.HSTECH). Brian Tycango, who tracks China's tech sector at Stansberry Research, says that in addition to enabling higher valuations, the restructuring better protects individual divisions from future government regulation. "Any new regulations will likely not affect the whole company now - just the particular division that that regulation covers," Tycango told Reuters.

☆ Alibaba's Hong Kong shares surge 16% on split-up plans
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

March 29 (Reuters) - Hong Kong shares of Alibaba Group (9988.HK) soared on Wednesday, marking a vote of confidence from investors after the company announced a major restructuring plan. Shares of Alibaba's e-commerce rival JD.com Inc (9618.HK) were up 7%, and gaming giant Tencent Holdings Ltd (0700.HK) jumped 5% on Wednesday morning. That compared with a 2.3% jump in benchmark Hang Seng Index (.HSI) and a 3.2% gain for the Hang Seng Tech Index (.HSTECH). One day before the re-organization was announced, Alibaba founder Jack Ma, who had been out of mainland China since late 2021, was spotted visiting a primary school in Hangzhou, the city where Alibaba is headquartered. Reporting by Josh Horwitz in Shanghai and Donny Kwok in Hong Kong; Editing by Muralikumar Anantharaman and Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ China's Alibaba to break up empire into six units as Jack Ma returns home
▼ + stars: | 2023-03-29 | by ( Josh Horwitz | ) www.reuters.com time to read: +5 min

Alibaba said the biggest restructuring in its 24-year history would see it 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. Zhang will continue as chairman and CEO of Alibaba Group, which will follow a holding company management model, and also serve as CEO of Cloud Intelligence Group. The exception would be Taobao Tmall Commerce Group that handles China commerce businesses and will remain a wholly owned unit of Alibaba Group. Investors said the split signals the clearing of regulatory worries and allays concerns that Alibaba had lost the potential to grow. [1/2] The logo of Alibaba Group is seen at its office in Beijing, China January 5, 2021.

☆ Alibaba’s restructuring and Jack Ma’s homecoming are all part of China’s plan
▼ + stars: | 2023-03-29 | by ( Laura He | ) edition.cnn.com time to read: +6 min

Ma is seen as a symbol of China’s tech industry and a barometer of the Chinese government’s support for private business. Alibaba’s restructuring is “part of [Beijing’s] strategy to shore up confidence in the private sector,” said Hong Hao, chief economist for Grow Investment Group. “[Alibaba’s restructuring plan] offers a way to limit monopoly power and platform sway,” Hong said. Unlocking valueInvestors and analysts have cheered Alibaba’s restructuring. Alibaba’s business will be split into six units: domestic e-commerce, international e-commerce, cloud computing, local services, logistics, and media and entertainment.

☆ Morning Bid: Bank calm, rates firm, Alibaba steals show
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

A semblance of calm has returned to world markets in the final week of the first quarter as the banking storm abates and the spotlight switched to a share-boosting six-way revamp of Chinese e-commerce giant Alibaba. Investors cheered the surprise move from Alibaba (9988.HK) as a sign Beijing's corporate crackdown may be nearing an end, sending shares of the Jack Ma-founded firm and peers soaring. The surprise move seeks to take advantage of Ermotti's experience rebuilding the bank after the global financial crisis 15 years ago. Broader stock markets were higher across the board, with Wall St futures up almost 1% ahead of the open. Futures markets now show a 50-50 chance of one more Fed rate hike in this cycle in May and half a point of easing by yearend.

He used to be boss of a tech giant. Now he’s studying fish and rice. The peregrinations of Jack Ma , co-founder of Alibaba Group Holding Ltd., over the past year have included a visit to a Japanese lab specializing in farmed tuna—where the staff didn’t recognize him—and a Dutch university to learn about sustainable food production.

☆ Alibaba to Split Into Six Groups and Explore IPOs in a Departure From Jack Ma Era
▼ + stars: | 2023-03-28 | by ( Raffaele Huang | Clarence Leong | ) www.wsj.com time to read: 1 min

Chinese e-commerce giant Alibaba Group Holding Ltd. said it plans to split itself into six independently run companies that could seek separate IPOs, effectively dismantling a business empire built over two decades by charismatic entrepreneur Jack Ma just as the tycoon reappeared in China. The reorganization of one of China’s largest private companies, once valued at more than $800 billion but now worth about a quarter of that, comes after Chinese authorities signaled in recent months they were winding down a sweeping regulatory clampdown aimed at reining in the country’s powerful tech sector.

☆ Alibaba to Split Into Six Separate Groups in Biggest Shake-Up
▼ + stars: | 2023-03-28 | by ( Clarence Leong | Raffaele Huang | ) www.wsj.com time to read: 1 min

Alibaba plans to split itself into six independently run entities. Chinese tech giant Alibaba Group Holding Ltd. plans to split its business into six independently run entities, the biggest structural overhaul in its history—announced a day after co-founder Jack Ma was seen back in mainland China after almost a year overseas. Alibaba Group will become a holding company overseen by current Chairman and Chief Executive Daniel Zhang , the company said in a statement on Tuesday.

☆ Jack Ma returned to China to visit a private school he founded, 2 years after he first vanished from public view amid Beijing's tech crackdown
▼ + stars: | 2023-03-28 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

On Monday, Alibaba co-founder Jack Ma visited a private school he founded in Hangzhou, China. Ma first vanished from public view after angering authorities in 2020 amid Beijing's tech crackdown. The private school caters to students from kindergarten to high school. Ma returned to China amid signals that Beijing may be taking a friendlier stance toward private enterprises after more than two years of a widespread tech crackdown. His visit follows a top Chinese central banker's comments in January that Beijing's tech crackdown was coming to a close.

HONG KONG, March 28 (Reuters Breakingviews) - In the biblical parable of the prodigal son, a repentant wastrel returns home to a forgiving and beneficent father. In China, Alibaba (9988.HK) founder Jack Ma's homecoming and rehabilitation appears to be part of an official campaign to revive flagging private sector investment. However, if officials believe the mere sight of Ma in public will revive business confidence, that hope has a whiff of desperation. Ma the prodigal entrepreneur has returned, but perhaps not for long. Shares of Alibaba rallied as much as 4% in Hong Kong following the SCMP report before closing flat at HK$85.25 on March 27.

☆ Alibaba is splitting into six to prepare for IPOs
▼ + stars: | 2023-03-28 | by ( ) edition.cnn.com time to read: +2 min

Alibaba Group plans to split its business into six main units covering e-commerce to cloud in the biggest restructuring of its 24-year history. Five of the business units will explore fundraising or initial public offerings, the company said Tuesday. The six units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group, it said in a statement. Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group (BABA), which will follow a holding company management model, and concurrently serve as CEO of Cloud Intelligence Group. The restructuring “does inject an element of flexibility and adaptability into the company, which currently is something of a behemoth,” he added.

☆ Alibaba to split into six units
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +2 min

March 28 (Reuters) - Alibaba Group Holding Ltd (9988.HK) said it plans split its business into six main units covering e-commerce, media and the cloud, adding that each of the units will explore fundraising or initial public offerings. STUART COLE, HEAD MACRO ECONOMIST AT EQUITI CAPITAL, LONDON"I am not sure how quickly Alibaba could be broken up. To me, it suggests something that Alibaba has been wanting to do for some time, but has been waiting for the opportunity to do so." With this expectation, investors will be more positive on Alibaba. It may reflect a new round of development for the business and reduce worries of regulatory issues."

☆ Alibaba to break up empire into six units, seek IPOs
▼ + stars: | 2023-03-28 | by ( Josh Horwitz | ) www.reuters.com time to read: +3 min

The six units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group, it said in a statement. Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group, which will follow a holding company management model, and concurrently serve as CEO of Cloud Intelligence Group. Each business group and other investments will retain the flexibility to raise outside capital and seek an initial public offering, it said, with the exception being Taobao Tmall Commerce Group that handles its China commerce businesses and will remain an Alibaba Group wholly owned unit. Each business group, he said, had to actively tackle the rapid changes in the market and each Alibaba employee had to "return to the mindset of an entrepreneur." The restructuring "does inject an element of flexibility and adaptability into the company, which currently is something of a behemoth," he added.

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