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Viewsroom

Alibaba breakup sends positive vibes to investors

Viewsroom

Reuters

News

4.458 Ratings

🗓️ 30 March 2023

⏱️ 12 minutes

🧾️ Download transcript

Summary

The $265 bln Chinese tech giant is splitting into six pieces. In this Viewsroom podcast, Breakingviews columnists discuss how the move could be replicated by peers like Tencent and how Beijing’s business charm offensive is sending the right signals to China watchers. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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to learn more. The views expressed on this podcast are those of the participants, not of Rorges News.

0:39.8

Alibaba's rise and subsequent fall has, you know, really been a symbol of Chinese tech

0:44.9

giants growing too quickly, growing too recklessly, and the government basically just stepped

0:50.4

in and reined them all in. So that has really hurt Alibaba. You've got years of crackdowns

0:55.8

that have basically, you know, it's their valuation. You know, the company was once worth

1:00.9

over $800 billion at its peak. It's now a little over $200 billion, so maybe $250260 now.

1:06.8

That was Robin Mack, a Hong Kong-based columnist at Reuters' Breaking Views, explaining the context of Alibaba's decision to split itself up.

1:16.4

The implications of that breakup is the focus of this week's Views Room.

1:23.1

Welcome back to the Views Room, a podcast from Reuters' Breaking Views, where columnists from around the world talk about the big stories of the week.

1:30.1

I'm your host, Amy Donlan, coming to you from London.

1:35.3

Alibaba, a sprawling Chinese e-commerce business, is splitting itself into six parts.

1:41.3

Investors are keen on the plan, and Beijing is also happy to charm the business community

1:46.2

in the hope that can help revive the economy. Here to examine the details of this situation and what

1:52.3

it means is Robin Mack in Hong Kong and Yaoan Chen in London. Welcome Robin and welcome Yowen. Hi, Amy. Hi. So, Robin, I'd love to start with you. I mean, could you talk us, just give us a bit of context about Alibaba. Like, what has its history been? How big is the company? And what does it do? Like, how important is it to the Chinese

2:19.0

economy? So Alibawa is one of the biggest Chinese tech companies in the country. It started out as an

2:27.3

e-commerce platform and then it just diversified and it is now a sprawling conglomerate. So it not only does it have e-commerce, but it has

2:36.7

a fintech affiliate, it has food delivery, it has logistics, online media, entertainment,

...

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