Alibaba and other Chinese shares bounce back as China reportedly looks to re-energize its stock market

Dow Jones2023-09-22

MW Alibaba and other Chinese shares bounce back as China reportedly looks to re-energize its stock market

By Emily Bary

Alibaba also could be getting closer to filing IPO paperwork for its logistics business

U.S.-listed shares of Chinese internet stocks were rising Friday, snapping back after two sessions of pressure.

The rally in names like Alibaba Group Holding Ltd. $(BABA)$, JD.com Inc. $(JD)$ and Nio Inc. $(NIO)$ comes after Hong Kong's Hang Seng Index finished up 2.2% in Friday trading.

Alibaba shares were up 4.5% after Bloomberg News reported that the company's Cainiao logistics unit could file paperwork for an initial public offering as early as next week. The company has reorganized in an attempt to unlock greater shareholder value and better facilitate spinoffs, and Alibaba already announced plans to spin off its cloud-computing business.

The company didn't immediately respond to a MarketWatch request for comment.

Other Chinese internet names were rising as well, including JD.com, up 2.5%, Bilibili Inc. $(BILI)$, up 4.7%, Tencent Music Entertainment Group $(TME)$, up 4.2%, and Baidu Inc. $(BIDU)$, up 3%. The KraneShares CSI China Internet exchange-traded fund KWEB was up 3.3%.

Bloomberg News also reported that China was considering easing rules that limit foreign ownership of domestic companies that are also publicly traded. The possible rule change would be intended to help reignite the country's stock market, the report said.

China limits total foreign ownership of locally listed companies at 30%, and no single foreign shareholder can own more than 10%, Bloomberg noted.

American depositary receipts of Chinese electric-vehicle companies were also getting a boost Friday, with Nio's up 1.7%, Li Auto Inc.'s $(LI)$ up 4.2% and Xpeng Inc.'s $(XPEV)$ up 4.5%.

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September 22, 2023 10:20 ET (14:20 GMT)

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