- Softbank has been a big backer of Chinese internet giant
- Tech rout of 2022 left Japanese firm under financial strain
- Alibaba bounced 50% off October 2022 all-time lows
The Hong Kong shares of Chinese internet and ecommerce giant Alibaba (9988:HK) fell sharply on Thursday (13 Apr) after reports emerged that Japan’s SoftBank (9984:TYO) plans to offload almost its entire stake in the company.
The sale will cut Softbank’s share in Alibaba to just 3.8%, according to the reports, citing an analysis of regulatory filings with the SEC (Securities and Exchange Commission).
US SHARES FELL 6% OVERNIGHT
Alibaba’s shares initially slumped as much as 4% in Hong Kong trade before losses eased to around 2%, leaving the stock trading at HK$94.15. Alibaba’s (BABA:NYSE) New York-listed stock lost nearly 6% overnight at $93.84, although pre-market data suggests a modest recovery when trading reopens on Wall Street later today.
The company’s shares have bounced around 50% off all-time lows hit in October 2022.
WHY SOFTBANK IS SELLING
Softbank is the Japanese multinational conglomerate holding company headquartered in Minato, Tokyo which focuses on investment management founded by Masayoshi Son. Through its venture capital arm, Vision Fund, it has become a colossal investor in technology businesses, but has come under enormous financial pressure following last year’s rout of tech stocks.
Softbank’s Japanese-listed stock drifted around 1% lower in Asian trade to ¥5,128.
