“We will focus on developing a sustainable growth model for Cloud Intelligence Group under the fluid circumstances,” the company said. In a statement Thursday, Alibaba ( BABA) said the new US restrictions “may materially and adversely” affect the ability of Cloud Intelligence Group to operate, impacting on profitability and casting doubt over the value of a separate listing for shareholders.Īlibaba’s shares fell nearly 10% in Hong Kong on Friday, wiping about $20 billion off the company’s market value. The announcement came only hours after crucial talks between Chinese President Xi Jinping and US President Joe Biden appeared to put the often rocky relationship between the world’s top two economies on a steadier footing.
Alibaba has dropped plans to spin off its cloud computing arm, sending its stock tumbling, because of US controls on chip exports to China which the company said had created “uncertainties” for the division’s prospects.
