Alibaba shares rise in New York but rival falls after acquisition announcements

PUBLISHED : Tuesday, 11 August, 2015, 2:34am
UPDATED : Tuesday, 11 August, 2015, 9:24am

Shares of Chinese e-commerce giant Alibaba rose 2.51 per cent to US$80.80 at mid-day in New York (midnight Hong Kong time), after it said it would spend 28 billion yuan to buy nearly 20 per cent of Nanjing-based bricks-and-mortar electronics retailer Suning.

Chinese online retailer slid 6.22 per cent to US$30.08, after it announced on Friday that it expected slower third-quarter year-on-year profit growth compared to the first half. It also announced on Friday that it bought a 10 per cent stake in domestic supermarket chain Yonghui Superstores for 4.31 billion yuan, to leverage its existing network of physical stores to expand its supply chain and offline product offerings. 

Mainland car-listing portal operator Bitauto’s shares rebounded 8.65 per cent to US$33.29 after falling 18 per cent on Friday when it announced third-quarter targeted revenues that are 3 to 8 per cent below analysts’ consensus forecast.

Meanwhile, the Deutsche X-trackers Harvest CSI300 China A-Shares ETF surged 5.87 per cent to US$42.81 after a 5 per cent gain of the Shanghai Composite Index as investors speculated Beijing would launch more economic stimulus measures and overhaul state-owned enterprises after poor economic figures over the weekend. The iShares China Large-Cap ETF tracking Hong Kong-listed Chinese shares gained 2.17 per cent to US$41.41.