Shares of SUNART RETAIL, a hypermarket chain operator in Hong Kong, plummeted 27.42% in Thursday's intraday trading session. The steep decline came after e-commerce giant Alibaba Group agreed to sell its majority stake in SUNART RETAIL to Chinese private equity firm DCP Capital for HK$12.298 billion (around $1.58 billion).
The divestment by Alibaba is part of the company's broader strategy to reshuffle its business portfolio and focus on its core e-commerce operations. The market had anticipated this move after SUNART RETAIL announced possible transactions related to its ownership structure back in October 2024.
Analysts at Jefferies noted that the sale of SUNART RETAIL aligns with Alibaba's strategies, stating, "The market had expected the sale to happen after the announcement by Sun Art related to possible transactions back in Oct-24." The stock of SUNART RETAIL hit its lowest level since September 24, 2025, marking the third-biggest percentage loser on the Hong Kong bourse during the trading session.
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