not vested
Alibaba Forms New Retail Partnership
By Shuli Ren
There has been a lot of speculative trading based on market rumors that Alibaba Group (BABA) will form a strategic partnership with China’s retail operators to expand into China’s massive offline space.
Alibaba confirmed this morning the formation of a strategic partnership with Chinese retail conglomerate Shanghai Bailian Group (600827.Shanghai). Prior to the announcement Bailian soared limit up 10% after mainland Chinese media reported on the alliance.
The strategic partnership does not involve Alibaba making financial investments into Bailian, according to Tencent Tech, a well-respected tech site. So it is not clear how Alibaba can immediately enhance Bailian shareholders’ value.
Last Friday, Hong Kong-listed Sun Art Retail (6808.Hong Kong), a French-Taiwanese joint venture, soared 6.5% in morning trading amid heavy buying before issuing a trading halt after media rumors that Alibaba would make a strategic investment into the convenience chain operator.
But Taiwan media, which reported on the Sun Art Retail rumor first, got it wrong. Sun Art tumbled 12.5% today after clarifying that it was not in talks with Alibaba over a strategic partnership. Remarkably, this $10 billion market cap stock is the 9th most traded company in Hong Kong this morning.
Source: Barron's Asia
http://blogs.barrons.com/asiastocks/201 ... rtnership/