Alibaba's Hong Kong shares set to open up 15% on split-up plans

Hong Kong shares of Alibaba Group were set to open up 14.96% on Wednesday after it announced plans to split into six units and explore fundraisings or listings for most of them. The stock was set to open at HK$96.85 each.

Hong Kong shares of Alibaba Group were set to open up 14.96% on Wednesday after it announced plans to split into six units and explore fundraisings or listings for most of them.

The stock was set to open at HK$96.85 each. That compared with a 2.9% gain for the benchmark Hang Seng Index and a 4.2% jump for the Hang Seng Tech Index. On Tuesday evening, the company announced that it would re-organize into a holding company structure, with Daniel Zhang retaining his position as CEO of Alibaba Group, and six sub-divisions each with their own CEOs and boards.

The revamp is the most significant restructuring in the company's history and comes after Beijing launched a years-long regulatory crackdown on the tech sector, which targeted Alibaba. Alibaba's U.S.-listed shares closed 14.3% higher.

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