Global Market: Alibaba Rout Drags China, Hong Kong Markets Lower Amid AI Spending Concerns
Alibaba said it will use the proceeds to expand AI infrastructure after profit fell 75% in the June quarter, weighing on shares.
- On Monday, Alibaba shares plunged as much as 10% in Hong Kong after the company priced an 80 billion Hong Kong dollar placement of newly issued shares.
- The share placement, expected to close Wednesday, follows a 75% profit drop for the June-quarter as capital expenditure on AI infrastructure weighed on recent results.
- Alibaba plans to use all net proceeds to expand its full-stack AI capabilities, building on its commitment to invest 380 billion yuan in cloud and AI infrastructure over three years.
- Vey-Sern Ling, senior equity advisor at UBP, told CNBC last week that Alibaba is "well positioned to chase that growth," citing its cloud computing arm and strong AI model.
- Chinese tech peers are also ramping up infrastructure spending, with Tencent reporting capital expenditure rose 65% to 52.8 billion yuan in the June-quarter to monetize AI models.
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Chinese e-commerce company Alibaba will put for sale 710 million new shares, each for 12.31 euros. The company's shares have fallen 24.5% since the beginning of the year.
Alibaba Raises $10 Bln in Record Hong Kong Share Sale
Alibaba raised HK$80 billion ($10.2 billion) in Hong Kong’s biggest secondary share sale. The online retail giant-turned-AI player sold 710 million shares at HK$112.7 each. Its shares slid as much as 10% Monday morning, their steepest drop since April 2025. Bloomberg's Anthony Stephens reports. (Source: Bloomberg)
Alibaba raises HK$80 billion through a share placement to fund AI infrastructure · TechNode
Alibaba has priced a placement of 710 million new Hong Kong-listed shares at HK$112.70 each, raising HK$80 billion (US$10.21 billion). The transaction is expected to close on Aug. 26. Alibaba said all net proceeds will be used to strengthen its full-stack AI capabilities and expand related infrastructure. The placement comes as the company accelerates spending on AI computing and cloud services. [Alibaba Group, Reuters]
Alibaba's shares collapsed by more than 10% at the opening of the Hong Kong Stock Exchange after the Chinese e-commerce giant set the placement price of 710 million new shares at $112.70 per share in Hong Kong, for a total value of ... (ANSA)
Global Market: Alibaba rout drags China, Hong Kong markets lower amid AI spending concerns
China and Hong Kong stocks fell sharply on Monday, led by technology shares, after Alibabas $10.2-billion share placement revived concerns over AI spending, shareholder dilution and the returns on heavy capital expenditure.
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