The move frees up the Chinese company's main divisions from ecommerce to media to the cloud to operate with far more autonomy, laying the foundation for future spin-offs and market debuts. Its shares climbed 8 per cent in premarket trading in New York.
The shift to a holding company structure is rare for major Chinese tech firms and could present a template for Alibaba's peers. Decentralising the company's business lines and decision-making power addresses one of Beijing's primary goals during its sweeping crackdown on the technology sector.
The government had criticised the influence of online platforms, particularly those of Alibaba and WeChat operator Tencent Holdings. That will likely mean the restructuring would draw support from government regulators who have been concerned that concentrated power in tech suppressed innovation. Alibaba and Tencent invested in hundreds of start-ups over the years, often helping to craft strategy as they grew.
"It is one step in the direction with China's policy to reduce the monopolistic nature of the tech giants," said Mr Marvin Chen, an analyst with Bloomberg Intelligence. "While China tech spin-offs
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Bu hikaye The Straits Times dergisinin March 29, 2023 sayısından alınmıştır.
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