Temasek Holdings pares its stake in Alibaba as it buys new shares of its domestic rival 'JD.com'
Alibaba Group Holding is the biggest and largest Chinese e-commerce company, which took over the online shopping space of the region by storm. Being one of the biggest tech firms in the world, several investors buy shares in it. One of the shareholders is Singapore’s Temasek Holdings Pte.
According to Bloomberg, the Singaporean investment firm has decided to cut back its stake in the Chinese online retailer ‘Alibaba’ in the fourth quarter. This move comes as Temasek Holdings buys shares of other Chinese tech companies that also includes Alibaba’s rival, JD.com.
It seems like Temasek dropped stake of Alibaba while buying shares of its domestic rival, which is rapidly improving its market position and is a real threat to Alibaba Group in China. Bloomberg added that the Singapore’s government-owned investment firm sold nearly 548,769 receipts of American depositary in the Chinese tech giant.
According to a filing with the US Securities and Exchange Commission, the group stated on Tuesday that it is left now with 47.5 million. The holding was previously valued at $1.03 billion, which significantly jumped to $3.86 billion when the shares rose by 38% in the fourth quarter.
Reports suggest that the new Temasek’s acquisitions include 6.1 million ADRs in JD.com, the closest competitor of Alibaba and 8.2 million ADRs in a renowned Chinese online travel company, called Tuniu Corp.
Temasek is confident of the future of China’s technology sector and industries. The investment firm first invested in Alibaba in 2011 where it bought China registered shares valued at $36 million (S$50 million).
Amidst the dying economy of China, Alibaba struggled to grow its business in the past months. Jack Ma remained positive throughout though. On the other hand, its rival JD.com significantly grew its market share, which threatened the Chinese e-commerce giant and its position in the market. The year-on-year revenue growth of JD.com was 52% during the three months ended in September whereas Alibaba’s revenue growth was only 32% in the same duration.
Guo adds that it will be exciting to see the battle between two retail businesses of the country. Alibaba already has a strong market position but the massive growth of JD.com has lured customers toward its online marketplace.
Apart from the online tech firms, Temasek also holds stakes in different pharmaceutical companies that includes Gilead Sciences Inc. (1.4 million shares), BioMarin Pharmaceutical Inc. (888,545 shares), and Quintiles Transnational Holdings Inc. (639,172 shares).
No comments:
Post a Comment