KABUL (BNA) Alibaba Group is planning to split into six units and explore fundraisings or listings for most of them, it said on Tuesday, in a major revamp as China vows to ease a sweeping regulatory crackdown and support its private.
The US-listed shares of the Chinese e-commerce conglomerate, which have lost nearly 70 per cent of their value since the curbs were imposed in late 2020, rose more than 10 per cent.
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.
The revamp comes a day after Alibaba founder Jack Ma returned home from a year-long stay abroad, a move that dovetailed with Beijing’s effort to spur growth in the private sector after two years of crackdown.
Analysts said the breakup could ease scrutiny over the tech giant whose sprawling business has been a target of regulators for years.
Each business group, he said, had to tackle the rapid changes in the market, and each Alibaba employee had to “return to the mindset of an entrepreneur.”
China’s new premier, Li Qiang, had recognized Ma’s return to the mainland could help boost business confidence among entrepreneurs and since late last year had begun asking him to come back, five sources with knowledge of the matter told Reuters.