Alibaba Stock News: Cainiao subsidiary to register for IPO as soon as next week

Alibaba rose above 4% in Friday's premarket.
Shipping subsidiary Cainiao could file for an IPO next week.
BABA stock has been in a downtrend since July 31.
Cainiao is said to be seeking to raise at least $1 billion.

Clay Webster FXStreet

Alibaba (BABA) stock surged more than 4% in Friday’s premarket after the Chinese ecommerce leader announced that its shipping and logistics business, Cainiao, will file for an initial public offering (IPO) in Hong Kong as soon as next week.

The NASDAQ 100 futures are also up 0.6% in the premarket just a day after experiencing one of its worst trading days since early March.

Alibaba stock news: Cainiao IPO ready to hit Hong Kong

During the Asian session early on Friday, Alibaba announced that Cainiao would seek to raise at least $1 billion from its IPO. There were no details concerning the overall value of Cainiao, but Alibaba stock rose 4% in Hong Kong on the news.

The Jack Ma-founded ecommerce titan developed Cainiao in-house as its unit for operating worldwide delivery and shipping services for its primary ecommerce business, as well as AliExpress and Lazada.

Back in March, Alibaba management announced its plan to split the conglomerate into six separately operating businesses, most of which will eventually hold their own IPOs.

Recently, the company was in talks for spinning off its Freshippo supermarket unit, but management decided that the market was not prepared for consumer-focused businesses at the moment. China has spent all of 2023 under a cloud as economic growth has leveled off.

Back in June, Bloomberg reported that Alibaba and Cainiao were already in talks with Citic Securities, Citigroup and JPMorgan Chase ahead of a possible IPO.

Separately, Chinese EV automaker Nio (NIO) has seen its share price advance 3.8% in Friday’s premarket after the company announced a car-centric smartphone that will soon be introduced to the wider market.

Alibaba stock forecast

Alibaba stock has clearly been in a downtrend since July 31, when the stock had difficulty reaching the $101 to $103 resistance band. The 9-day Simple Moving Average (SMA) has traded below its 21-day counterpart (a bearish signal) since September 5.

BABA daily chart

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

EUR/USD edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.

Gold re-attempts $5,200 amid a softer USD; reduced Fed rate cut bets cap gains

Gold bounces toward $5,200 for the second consecutive day on Thursday amid a modest US Dollar weakness. Wednesday's upbeat US macro data further tempered hopes for three rate cuts by the Fed in 2026. Furthermore, escalating Middle East tensions might continue to benefit the USD's status as the global reserve currency and contribute to capping the bullion.