Alibaba Group's Hong Kong-listed shares climbed 1.4% to HK$115.80 on Wednesday after founder Jack Ma purchased more than HK$600 million (US$76.5 million) in stock.
The purchase by Ma follows a 10% intraday decline in Alibaba shares on Monday after the company announced a HK$80 billion (US$10.2 billion) primary share offering priced at an 8.4% discount to the prior close. The offering, which totals 710 million new shares at HK$112.70 each, is the largest follow-on issuance by a Hong Kong-listed company on record.
Chairman Joe Tsai and Chief Executive Officer Eddie Wu also increased their exposure, with Tsai acquiring HK$82 million in shares on Tuesday following HK$80 million in purchases on Monday. Wu bought approximately HK$40 million on Monday. Combined, the insider purchases total HK$202 million over two days.
The share offering, announced on August 23, contributed to a broader decline in Alibaba's stock, which had already fallen 75% in quarterly net profit. The company has committed over 380 billion yuan (US$56.5 billion) to AI infrastructure over three years, a move aimed at positioning Alibaba for long-term growth amid a challenging macroeconomic environment.
The Hang Seng index rose 0.7% on Wednesday, reflecting broader market strength as Alibaba shares recovered following the insider purchases.
