Alibaba Proposes To Split Company Into 6 Business Groups, Shares Rally By 9%

Alibaba Group plans to split into six units and explore fundraisings or listings for most of them, it said on Tuesday, in a major revamp as Beijing vows to ease a sweeping regulatory crackdown and support its private enterprises, according to Reuters.

Alibaba's U.S.-listed shares rose as much as 8% after the news. The Alibaba stock is down around 70% since the regulatory crackdown started in late 2020, quoted Reuters.

According to Reuters, The Chinese e-commerce conglomerate said that the biggest restructuring in its 24 year history would see it split into six units -- Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group

The revamp of the conglomerate comes a day after its founder Jack Ma returned home after a year-long stay abroad and as Beijing looks to spur private sector growth after a two-year-long regulatory crackdown on its showpiece private enterprises, added Reuters.