Shares in Alibaba Group and other leading Chinese tech firms jumped on Wednesday, as investors cheered an unprecedented revamp of the Jack Ma-founded company as heralding the beginning of the end to Beijing’s crackdown on the sector.
Alibaba said on Tuesday it was planning to split into six units and explore fundraisings or listings for most of them, in the biggest restructuring of the technology conglomerate in its 24-year history.
The group’s Hong Kong-listed shares jumped as much as 16.3%, tracking a 14.3% rally in its U.S.-listed shares overnight. Its e-commerce rival JD.com Inc rose 7% and gaming giant Tencent Holdings Ltd gained 5%.
That compared with a 2.3% jump in benchmark Hang Seng Index and a 3.2% gain for the Hang Seng Tech Index.
Alibaba’s revamp “feels like a continuation of the government restructure” of the tech companies and dismantling of the large monopoly businesses…
