Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
An update from Alibaba Group Holding Ltd. ( (HK:9988) ) is now available.
Alibaba Group Holding Ltd. has received approval from the Hong Kong Stock Exchange to proceed with a proposed spin-off of certain infrastructure assets via a real estate investment trust listing on the Shenzhen Stock Exchange. The spin-off will center on Jiaxing Park, currently held through indirect wholly owned subsidiaries Jiaxing Chuanyun and Jiaxing Chuanxiang, and will be executed through the establishment of a publicly offered Infrastructure REIT managed by CICC Fund.
To implement the transaction, an asset-backed securities structure will be set up by CICC as ABS manager, which will securitize the project companies and Jiaxing Park before the Infrastructure REIT acquires the ABS interests and, indirectly, the underlying assets. Upon completion, the project companies will cease to be Alibaba subsidiaries and will no longer be consolidated into the group’s financial statements, signaling a move to unlock infrastructure asset value and potentially streamline Alibaba’s balance sheet.
The Hong Kong Stock Exchange has also granted Alibaba a waiver from the requirement to provide existing shareholders with an assured entitlement to units in the new Infrastructure REIT. The company argued that legal and regulatory constraints in China, including the requirement that SZSE-listed public fund units be held only by qualified investors with specific account types, make it impracticable to extend such entitlements to all shareholders, particularly those holding through nominee structures.
The most recent analyst rating on (HK:9988) stock is a Buy with a HK$176.00 price target. To see the full list of analyst forecasts on Alibaba Group Holding Ltd. stock, see the HK:9988 Stock Forecast page.
More about Alibaba Group Holding Ltd.
Alibaba Group Holding Ltd. is a China-based technology conglomerate primarily engaged in e-commerce, cloud computing, digital media, and logistics services, with shares listed in Hong Kong and American depositary shares traded on the New York Stock Exchange. The company operates a diversified digital ecosystem that connects merchants, consumers, and enterprises across domestic and international markets.
Average Trading Volume: 85,840,288
Technical Sentiment Signal: Hold
Current Market Cap: HK$2529.6B
For a thorough assessment of 9988 stock, go to TipRanks’ Stock Analysis page.