HONG KONG
China’s Alibaba shares slumped in Hong Kong trade on Monday after it launched a $10.2 billion share sale at a steep discount to fund its AI ambitions, with investors focused on stock dilution and execution risks. The e-commerce and cloud computing giant said it would sell HK$80 billion ($10.2 billion) of new shares at HK$112.70 each, an 8.4% discount to Friday’s close, to fund chips, AI infrastructure and models. AI has become Alibaba’s biggest driver of revenue growth at a time when e-commerce growth is stagnating, and its Qwen AI models are some of the most popular in China.