Alibaba Group (9988.HK) plans to split into six units and explore fundraisings or listings for most of them, it said on Tuesday, in a major revamp as Beijing vows to ease a sweeping regulatory crackdown and support its private enterprises.
Alibaba’s U.S.-listed shares rose as much as 8% after the news. The Alibaba stock is down around 70% since the regulatory crackdown started in late 2020.
The Chinese e-commerce conglomerate said that 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 of the conglomerate comes a day after its founder Jack Ma returned home after a year-long stay abroad and as Beijing looks to spur private sector growth after a two-year-long regulatory crackdown on its showpiece private enterprises.
“The original intention and fundamental purpose of this reform is to make our organisation more agile, shorten decision making links and respond faster,” Zhang said in a letter to staff seen by Reuters.
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