Alibaba reveals state stakes in 12 business units

Bloomberg and staff reporter

Alibaba (9988) disclosed a wider web of Chinese government stakes in its business units than previously known, following an inquiry from the US Securities and Exchange Commission.

The Hangzhou-based e-commerce pioneer said in filings that more than a dozen of its entities are partially owned by Chinese state-owned enterprises or foreign sovereign wealth funds. The company said the disclosures were made "in response to certain comments from the staff of the SEC" as an amendment to its earlier filing from July.

The filings come as China's Communist Party said this month that it will play a bigger role in steering the country's technology and science development. Beijing's tightening grip over its tech companies in recent years has intensified investor concern and the potential for greater scrutiny in the US.

Chinese state-owned enterprises had shares in six of Alibaba's direct-sales businesses, which contributed less than 6 percent of its total revenue in the fiscal year to March 2023. Five of those stakes were below 10 percent and the other was below 30 percent, according to the filings.

Alibaba's chairman Joe Tsai said that the giant can learn from its rivals like Pinduoduo but it is back on track.

Meanwhile, Ant Group, separated from Alibaba, outbid Citadel Securities for Credit Suisse's investment bank venture in China, in a surprise move that will be subject to close regulatory scrutiny, sources said.

In other news, Tencent (0700) applied for various trade markets for its artificial intelligence tool Hunyuan Shengtu which will generate images according to the given texts.