Shanghai (China), Nov 17 (EFECOM).- The shares of the Chinese e-commerce giant Alibaba opened this Friday with falls of 7.81% on the Hong Kong Stock Exchange after revealing that it will cancel the spin-off of its intelligence subsidiary in the cloud (‘cloud’) due to US restrictions on the export of advanced chips.
Furthermore, around 10:00 a.m. local time (02:00 GMT), the technology company’s shares deepened their decline by falling 8.11%.
In New York, where it is also listed, the decrease in this Thursday’s session was 9.14%, after learning the news, disclosed within the framework of the results account for its first fiscal semester.
In the aforementioned document, the company points directly to “the recent expansion of United States restrictions on the export of advanced computing chips,” which “generates uncertainties” for the aforementioned subsidiary.
“We believe that a complete demerger of the cloud intelligence group may not result in the desired effect of improving shareholder value. Therefore, we have decided not to carry out a complete demerger,” Alibaba said.
Instead, the company will focus on “developing a sustainable growth model” for its cloud subsidiary – the one that grew the least of all its segments in the first half – in the face of “unstable circumstances.”
The technology company is immersed in a reorganization plan that was originally going to divide it into six separate units that could go public separately.
In this regard, Alibaba indicated that its logistics subsidiary Cainiao has already submitted an application for a public offering of shares through the Hong Kong Stock Exchange, while its supermarket chain Freshippo has temporarily paralyzed its plans to “evaluate the conditions of the market”.
For its part, Alibaba’s international e-commerce division – which includes its AliExpress portal, with a presence in Spain – is “in preparations” to obtain external financing, the document adds.
The group indicated that its profits multiplied by 28 in its first fiscal semester (April-September), largely due to the poor result it obtained in the same period last year due to anti-covid restrictions in China and the subsequent collapse of the consumption, as well as a drop in the market prices of the listed companies in which it had investments. EFECOM