‎“Alibaba” loses $20 billion of its market value .. Find out the ‎reason

The Chinese giant Alibaba Group lost $20 billion in market value after it canceled its plans to separate its cloud business and temporarily halted the listing of its supermarket unit.

The company, which competes with US technology giant Amazon, said it would not go ahead with the spin-off of its Cloud Intelligence Group, citing US export restrictions on advanced chips.

Alibaba said the restrictions “created uncertainty” about its cloud business, which competes with Amazon Web, Microsoft Azure, and Google’s cloud platform.

Instead, the company said, it will focus on developing a sustainable growth model based on the emerging AI-driven demand for networked and large-scale cloud computing services.

At the market close on Thursday in Hong Kong, Alibaba’s market value reached 1.65 trillion Hong Kong dollars ($211.6 billion). Alibaba’s market value fell on Friday to 1.49 trillion Hong Kong dollars ($191.1 billion).

This translates to a loss of $21.1 billion in market capitalization, according to CNBC’s calculations of data from FactSet.