Alibaba shares set to slide 8% after it shelves cloud unit spin-off
Nov 17, 2023 - us.fashionnetwork.com
Alibaba Group's shares listed in Hong Kong were expected to drop by 7.8% after the company decided to abandon its plans to spin off its cloud business. This decision was due to uncertainties surrounding U.S. restrictions on chips used in artificial intelligence applications.
The stock was anticipated to open at HK$75.0, marking the first reaction in Asia following the announcement made late on Thursday. The company's U.S. listed securities had already closed down by 9%.
Key takeaways:
Alibaba Group's Hong Kong-listed shares were set to fall 7.8% after it cancelled plans to spin off its cloud business.
The cancellation was due to uncertainties over U.S. restrictions on chips used in artificial intelligence applications.
The stock was set to open at HK$75.0, marking the first reaction in Asia since the announcement.
The company's U.S. listed securities closed down 9%.
