The stock of Alibaba Group Holding Limited, BABA, is down Tuesday in line with the broader indexes IShares China Large-Cap ETF FXI and KraneShares trust KraneShares CSI China Internet ETF KWEB amid worries about the country's property sector.
In the Hong Kong Stock Exchange, Alibaba said it would spin off Cainiao by a separate listing of the Cainiao shares.
Cainiao Smart Logistics Network Limited, formerly China Smart Logistics Network, is a Chinese logistics company that was established in 2013 by Alibaba Group, together with eight other companies. Cainiao, a company of 100 billion yuan, was one of the biggest unicorns in China in May 2018, with a market value of 100 billion yuan.
Cainiao will continue to hold more than 50 percent of the shares in Cainiao, and therefore, Cainiao will remain a subsidiary of the company.
The global e-commerce industry is experiencing a shift towards discount retailing due to China's economic problems and inflation in the U.S. and Europe.
While significant platforms like Alibaba and JD.com Inc. JD report growth, PDD Holdings Inc PDD overshadowed both with a staggering 66% YoY revenue increase.
After COVID-19, economic uncertainty and a sluggish retail rebound in China have triggered a 'value-for-money battle' on e-commerce platforms.
From North America to Europe, consumers from North America to Europe gravitate towards platforms like PDD Holdings' Temu and Bytedance's TikTk Shop, which offer affordable goods from China.
Pinduoduo and Shein are among the top e-commerce firms that invest heavily in discounts to gain market share, luring consumers with attractive products. Even Amazon.com Inc AMZN is gearing up for substantial discounting.
BABA shares were down 0.44% on Tuesday at $86.84 per share on the Nasdaq Stock Market.