China’s e-commerce leader said it’s “reset” and decided not to pursue a plan to hive off and eventually list its cloud services division. Instead, it will focus on growing the unit organically and dole out its first-ever annual dividend of US$2.5 billion, assuaging shareholders hoping for a big payout from the unit’s debut.
Alibaba Group Holding tumbled as much as 10% after it called off a spinoff of its giant cloud business as a result of tightened US curbs on advanced chips for China.
The announcement stunned investors, sending shares down to a low of US$78.23 as trading got underway in New York, and casting doubt on a historic overhaul laid out mere months ago.
