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People walk on the street near a large screen showing the latest stock exchange data in Shanghai on March 15. Photo: EPA-EFE
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Alibaba slides in Hong Kong on SoftBank exit report while market overturns losses on bullish China exports data

  • SoftBank of Japan is selling down its stake in Alibaba Group to as little as 3.8 per cent using forward contracts, FT reported, citing US regulatory filings
  • Hang Seng has struggled this week as major corporate insiders also cut stakes in WeChat operator Tencent and carmaker BYD
Hong Kong stock market
Jiaxing Li
Jiaxing Li
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Hong Kong stocks erased losses triggered by a sell-off in Alibaba Group Holding and BYD, as market sentiment improved after a government report showed China exports rose more than expected last month.

The Hang Seng Index climbed 0.2 per cent to 20,344.48 at the closing of Thursday trading, after sliding as much as 2.1 per cent. The Tech Index pared a decline to 0.2 per cent while the Shanghai Composite Index of onshore equities weakened 0.3 per cent.

Tencent Holdings jumped 1.7 per cent to HK$363.20 and HSBC gained 0.9 per cent to HK$55.25 while WuXi Biologics surged 7.8 per cent to HK$53.85. Property developer Longfor advanced 2.5 per cent to HK$24.85 while sportswear maker Li Ning gained 2.4 per cent to HK$59.50.

Shipments rose by 14.8 per cent last month from a year earlier, the customs bureau said in Beijing, which surprised to the upside, economists at Nomura and Goldman Sachs said. Exports fell 6.8 per cent in the combined January-February period from a year earlier.

The market slipped for much of the session before the late turnaround, as Alibaba Group slumped as much as 5.2 per cent after the Financial Times said SoftBank has decided to sell almost all of its interest to limit its exposure to China, citing prepaid forward contracts in regulatory filings.

“Leveraged investors have added to their longs substantially [since the Alibaba Group reorganisation] and some probably now are unwinding those positions,” said Redmond Wong, a strategist at Saxo Markets Hong Kong. “Major shareholders of mega-cap are divesting” while analysts are cutting earnings estimates, he added.

Alibaba’s ChatGPT-like service to be integrated in all its products

The Tokyo-based investor last reported owning 2.84 billion ordinary shares or a 13.7 per cent stake in Alibaba, according to its US regulatory filing on December 31. It had 5.07 billion shares or 23.9 per cent stake in the Chinese company, according to Alibaba’s annual report published in July last year.

Alibaba is the owner of the South China Morning Post.

02:17

After long absence from China, Jack Ma makes rare appearance to visit school in Hangzhou

After long absence from China, Jack Ma makes rare appearance to visit school in Hangzhou
The Hang Seng Index has struggled this week, pressured by reports that major investors are exiting from some of the biggest Chinese companies like Tencent and carmaker BYD. While Tencent rebounded 1.7 per cent to HK$363.20, BYD lost 0.2 per cent to HK$222.20.
Stocks also wavered amid concerns about capital flight from the city, as traders stepped up bets on another rate increase in the US. The Hong Kong Monetary Authority intervened in New York hours to buy the local currency at HK$7.85 per dollar and sold the equivalent US$1.153 billion to protect its peg and trading band.

Elsewhere, Beisen Holding dropped 0.7 per cent to HK$29.50 on its first day of trading in Hong Kong.

Major Asian markets were mixed. The S&P/ASX 200 in Australia dropped 0.3 per cent, while the Kospi in South Korea gained 0.4 per cent and the Nikkei 225 in Japan added 0.3 per cent.

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