Alibaba’s plan to split into six business units has spurred a rally for Chinese technology groups, with traders seeing the move as the latest sign that Beijing’s rolling crackdown on the sector was coming to a close.Alibaba’s Hong Kong-listed shares rose more than 13 per cent on Wednesday, following similar gains for the stock on Wall Street, while the Hang Seng Tech index tracking the largest technology companies listed in Hong Kong climbed more than 3 per cent.
Shares in Japanese tech investor SoftBank, one of Alibaba’s most important early investors, added more than 6 per cent in Tokyo.
Strategists and analysts said the radical shake-up to Alibaba’s corporate structure, which people familiar with the matter said had received positive feedback from regulators prior to the announcement, reflected a shift by internet groups to become more responsive to Beijing’s policy priorities. The move would also serve to bolster profits in the wake of a long share price slump for the sector’s biggest names.