RT.com
18 Nov 2023, 14:51 GMT+10
The e-commerce giant had previously scrapped plans to spin off its cloud business over US chip export restrictions
Chinese tech stocks in Hong Kong plummeted on Friday shortly after a massive decline in Alibaba Group shares that followed the online retailer's announcement to scrap plans to spin off its cloud business.
Alibaba Group's Hong Kong shares dropped 10% a day after the e-commerce giant said it would shelve cloud spinoff due to major uncertainties over US restrictions on exports of chips used in artificial intelligence (AI) applications.
The Hang Seng Index, which represents the 30 largest technology companies listed in Hong Kong, shed 2.12%, or 378.63 points, to close at 17,454.19. Meanwhile, the Hang Seng China Enterprises Index lost 2.33%.
Alibaba's shares are down close to 15% year-to-date, underperforming the broader Hang Seng index's 11.2% decline in the same period.
Alibaba Goup, once the most valuable in the Asian stock markets, was worth around $830 billion at its peak in October 2020. However, after the major online retailer took center-stage in Beijing's technology sector crackdown its value dropped to less than one fourth of that amount. The devaluation had been also exacerbated by a slowdown of Chinese economic growth.
The company's latest announcement, which underscores a reversal of its ambitious plans to carve out the cloud business as part of the biggest restructuring in Alibaba's 24-year history, comes amid increasing concerns over US export restrictions.
Earlier this week, similar worries were raised by Chinese tech giant Tencent that said that the curbs would force it to seek domestically produced alternatives.
Washington introduced curbs on its most advanced computing chips used for artificial intelligence and chip-making equipment in 2022 with the aim of stalling China's ability to manufacture and develop advanced semiconductors that boost its military capabilities. The list of restrictions has since been expanded, and a number of Chinese tech firms were blacklisted.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Entertainment Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Entertainment Sun.
More InformationWASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
WASHINGTON, D.C.: An elaborate impersonation scheme involving artificial intelligence targeted senior U.S. and foreign officials in...
SLUBICE, Poland: Poland reinstated border controls with Germany and Lithuania on July 7, following Germany's earlier reintroduction...
WASHINGTON, D.C.: After months of warnings from former federal officials and weather experts, the deadly flash floods that struck the...
MOSCOW, Russia: Just hours after his sudden dismissal by President Vladimir Putin, Russia's former transport minister, Roman Starovoit,...
DHARAMSHALA, India: The Dalai Lama turned 90 on July 6, celebrated by thousands of followers in the Himalayan town of Dharamshala,...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
New Delhi [India], July 11 (ANI): Vice President Jagdeep Dhankhar urged Indian businesses to expand globally, not only in markets but...
Noida (Uttar Pradesh) [India], July 11 (ANI): Yash Sahu, the son of Kanhaiya Lal, the tailor who was murdered in Rajasthan's Udaipur,...
The 17th BRICS summit was more than a photo op. It was a coordinated rejection of Western power and a declaration of intent A few...
The 17th BRICS summit was more than a photo op. It was a coordinated rejection of Western power and a declaration of intent A few...
Noida (Uttar Pradesh) [India], July 11 (ANI): After the Delhi High Court ordered a stay on the release of the film 'Udaipur Files:...