Alibaba raises stake in top China investment bank


HONG KONG • Alibaba Group Holding Ltd has acquired another chunk of shares in China International Capital Corp Ltd (CICC) for about HK$1.8 billion (RM935.78 million), enlarging its stake in a prestigious investment bank that can help propel deals and financial transactions around the world.

The e-commerce giant bought 117.1 million Hong Kong-listed shares at HK$15.50 (RM8.03) apiece on Feb 14, CICC said in a filing.

That expanded its stake to about 11.7% of stock listed in the city from roughly 5%, almost matching Tencent Holdings Ltd’s 12%. CICC’s Hong Kong shares leapt as much as 11.1% yesterday, marking their biggest intraday jump in more than a year.

Alibaba joins arch-rival Tencent as a backer of CICC, once dubbed China’s Goldman Sachs Group Inc after it brought some of the country’s largest state-run firms to market.

In 2017, CICC completed a US$2.5 billion purchase of China Investment Securities Co Ltd, plunging into the retail investor market.

Overall, Alibaba now holds about 4.84% of CICC’s total issued shares on a fully diluted basis, an Alibaba representative said.

“Its strength as a boutique investment bank is unparalleled domestically. It will be a good complement to Alibaba, which is doing many deals and can use a lot of advisory service,” said Richard Cao, a Shenzhen-based analyst at Guotai Junan Securities Co.

“The purchase serves Alibaba’s business strategy.” — Bloomberg