Alibaba transfers stakes in Chinese companies to new vehicle amid restructuring efforts
- Alibaba (China) Network Technology has transferred its stakes in seven listed companies to Hangzhou Haoyue Enterprise Management
- The move is meant to allow Alibaba (China) Network, established in 1999, to focus on its main businesses, according to filings
Alibaba (China) Network Technology, a major Alibaba Group Holding subsidiary that serves as a holding vehicle for its equity stakes, has transferred shares in at least seven listed companies to a new local venture, according to Chinese corporate announcements.
All of Alibaba’s holdings in those seven companies – which include Focus Media, an advertisement placement services provider, and YTO Express, a courier company – have been transferred to Hangzhou Haoyue Enterprise Management, a new vehicle created in October with the same ownership structure as Alibaba (China) Network, according to filings by those listed firms.
Under China’s A-shares regulations, companies listed on the mainland must disclose shareholder changes involving stakes of 5 per cent or more.
Alibaba, owner of the South China Morning Post, did not immediately respond to a request for comment.
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The deals come as Alibaba pushes through with a sweeping restructuring to break up its sprawling empire, once envisioned by founder Jack Ma as “the world’s fifth largest economy”.
According to filings by Meinian Onehealth, another of the seven listed companies, the equity transfer was meant to allow Alibaba (China) Network to focus on its main businesses.
