Alibaba stock slumps in Hong Kong after $10.2 billion share placement to fund AI

The Hong Kong-listed shares of Alibaba slumped on Monday ​after the Chinese e-commerce and ​cloud computing company launched a $10.2 billion share placement, as ​investors worried about payback from its massive AI spending.

Alibaba said on Sunday its HK$80 billion ($10.21 billion) share placement finalised at HK$112.70 apiece – an 8.4% discount to its Friday ‌close – is ⁠aimed at ⁠funding AI-related development, as it redoubles AI bets amid competition and simmering Sino-U.S. tech ​rivalry.

Its shares fell as much as 10% to HK$110.10 in early Hong Kong trade.