Alibaba’s Hong Kong-listed shares rose 1.4% to HK$115.80 on Tuesday after founder Jack Ma purchased more than HK$600 million (approximately $76.5 million) of the company’s stock, signaling confidence in its AI-driven growth strategy.
The purchases followed Alibaba’s HK$80 billion (about $10.2 billion) share placement of 710 million new shares, priced at HK$112.70 each—a discount of 8.4% to the prior close. The transaction, the largest primary follow-on offering by a Hong Kong-listed company, aims to fund Alibaba’s three-year, 380 billion yuan ($56.5 billion) commitment to AI infrastructure, including chips, computing resources, and AI models such as its Qwen suite.
Shares had fallen as much as 10% on Monday after the placement announcement, reflecting investor concerns over dilution and the near-term impact of heavy AI-related capital expenditures. Alibaba reported a 75% drop in quarterly net profit, largely attributed to costs tied to its AI expansion.
In addition to Ma’s purchase, Alibaba Chairman Joe Tsai and Chief Executive Eddie Wu acquired shares worth a combined HK$202 million over two days. Tsai bought about HK$82 million on Tuesday, following HK$80 million on Monday, while Wu purchased roughly HK$40 million on Monday. The placement is expected to close on Wednesday.
The Hang Seng Index rose 0.7% during the session, providing a modest lift to regional equities. Alibaba’s latest insider buying follows broader efforts to reassure investors amid a shift toward high-cost AI development, even as short-term profitability pressures mount.
