Monday, December 4, 2023

Alibaba left 20,000 million in the stock market

The Hong Kong Stock Exchange affected by a significant 10% decrease in share price Ali Baba after the company announced Cancel your plan to migrate your business to the cloud. This decision was made in response to new restrictions introduced by the United States on the export of cutting-edge microchips. In addition, Alibaba has also decided to postpone its IPO in the supermarket business while it assesses market conditions.

The cancellation of the separation of Alibaba’s cloud business had a strong impact on the company’s stock price. On the Hong Kong Stock Exchange, its shares fell 9.96%, representing a loss of more than 162 billion Hong Kong dollars (about 19.1 billion euros) in its market capitalization in one session. Certificates traded on the New York Stock Exchange also closed with a drop of 9.14% and are expected to continue to fall in pre-opening trading the next day.

The decision to cancel the separation of Alibaba’s cloud business is due to trade restrictions imposed by the United States. These restrictions include the export of cutting-edge microchips, which has created uncertainty about the prospects of the Cloud Intelligence group. The Chinese company believes that a complete spin-off of the cloud business may not be beneficial for shareholders in these circumstances, as the new restrictions may negatively affect the ability to offer of products and services, as well as financial results and operating conditions. .

Faced with these changing circumstances, Alibaba decided not to pursue a complete spin-off of its cloud business and to focus instead on developing a sustainable growth model. The company intends to adapt to market conditions and develop its business appropriately, taking into account the new trade restrictions imposed by the United States.

In October, the United States expanded export control rules to further restrict exports of advanced computer microprocessors and semiconductor manufacturing equipment to China. This move has created tensions between the United States and China in trade and investment, and became one of the factors that led to the cancellation of the separation of Alibaba’s cloud business.

World Nation News Desk
World Nation News Desk
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