Alibaba is reportedly planning to raise approximately $10 billion through a new share issuance in the Hong Kong market, with the proceeds intended for AI infrastructure expansion and chip and model development. Its shares plunged 10% in the Hong Kong market.
Asian stocks were mixed. Concerns about a prolonged war between the United States and Iran, along with expectations of stabilization in US markets, are driving trading. Markets are awaiting an explanation from US Treasury Secretary Bessent on economic measures against Iran, while Iran has issued a warning.
As the breakdown of tariff negotiations between the United States and Canada weighs on market sentiment, there are expectations that the US government’s announcement of fiscal consolidation measures and increased Treasury buybacks could also support equity markets.
Alibaba is reportedly seeking to raise approximately $10 billion through a new share issuance in the Hong Kong market. The funds are intended for AI infrastructure expansion and chip and model development.
Alibaba’s results reportedly showed a 75% year-on-year decline in second-quarter net income, and the fundraising is being cited as a factor that could heighten market concerns about the sustainability of its AI investment. Developments in the capital markets have also included comments from prominent investors.