Shares in Alibaba Group and other leading Chinese tech firms jumped 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's revamp "feels like a continuation of the government restructure" of the tech companies and dismantling of the large monopoly businesses in China, said Jon Withaar, head of Asia special situations at Pictet Asset Management.
China's unprecedented regulatory crackdown in the last couple of years on its marquee domestic companies, mainly from the internet, private education and property sectors, had wiped off billions in market values and weighed on investor sentiment. The group had been planning to spin off individual business units for a long time, according to two sources familiar with the company's thinking.
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