Lates News

Alibaba announced plans to issue HK$12 billion in zero-coupon convertible bonds. The bonds can be repaid by delivering Alibaba Health shares and other methods to fulfill its exchange obligations. Jefferies stated that considering the strong performance of Alibaba Health's stock price this year, the financing cost of this issuance is expected to be relatively low. Analysts including Thomas Chong mentioned in a report that Alibaba currently holds about 64% of Alibaba Health's shares, and the approximately 40% increase in Alibaba Health's stock price since the beginning of the year helps reduce the financing cost. Convertible bonds denominated in Hong Kong dollars have lower benchmark interest rates compared to those denominated in US dollars, making financing more advantageous.