Alibaba’s Hong Kong-listed shares advanced 1.4% to HK$115.80 on Wednesday after founder Jack Ma purchased more than HK$600 million ($76.5 million) of stock, underscoring investor support for the company’s AI strategy.
The purchase follows a $10.2 billion share placement announced last week, the largest primary follow-on offering by a Hong Kong-listed company. Proceeds from the HK$80 billion issuance of 710 million new shares at HK$112.70 each will fund Alibaba’s three-year, $56.5 billion commitment to AI infrastructure, including chips, computing power, and model development.
Shares had fallen as much as 10% on Monday after the placement was priced at an 8.4% discount to the prior close. Chairman Joe Tsai and CEO Eddie Wu also bought shares worth a combined HK$202 million over the past two days, with Tsai purchasing HK$82 million on Tuesday following HK$80 million on Monday, and Wu buying HK$40 million on Monday.
Alibaba reported a 75% drop in quarterly net profit, attributed largely to costs tied to its AI expansion. The company’s Qwen AI models have gained traction in China, providing additional momentum to its broader artificial intelligence initiatives.
The share placement is expected to close this week, with all net proceeds directed toward strengthening Alibaba’s full-stack AI capabilities.
