Alibaba's Hong Kong shares increase 16% on split-up plans

Alibaba Group's Hong Kong shares soared on Wednesday (Mar 29), a vote of confidence from investors following the company's announcement of a major restructuring plan.

The stock jumped as much as 16.3 percent to HK$98, its highest level since February 21, on track to end three days of losses and track a 14.3 percent rally in its US-listed shares overnight.

The restructuring, announced on Tuesday, has boosted investor confidence in China's broader technology sector, which has been battered by a heavy regulatory crackdown in recent years.

On Wednesday morning, shares of Alibaba's e-commerce rival JD.com Inc rose 7%, while gaming behemoth Tencent Holdings Ltd rose 5%.

This compares to a 2.3% increase in the benchmark Hang Seng Index and a 3.2% increase in the Hang Seng Tech Index.

Softbank Group Corp, a major shareholder in Alibaba, rose 6% in Japan.

Alibaba announced on Tuesday that it would restructure into a holding company structure, with Daniel Zhang remaining as group CEO and six sub-divisions with their own CEOs and boards.

The revamp is the most significant restructuring in the company's history and comes after Beijing launched a years-long regulatory crackdown on the tech sector, in which Alibaba was a common target.

One day before the reorganisation was announced, Alibaba founder Jack Ma, who had been out of mainland China since late 2021, was spotted visiting a primary school in Hangzhou, the city where Alibaba is headquartered.