China's Alibaba Scraps Cloud Unit Spin-Off Citing US Chip Curbs
Alibaba's US-listed shares were down 8.4% in premarket trading
Chinese e-commerce giant Alibaba said on Thursday it would cancel the spinoff of its Cloud Intelligence arm in light of "the recent expansion of US restrictions on export of advanced computing chips".
"We believe that a full spin-off of Cloud Intelligence Group may not achieve the intended effect of shareholder value enhancement," the company said in its earnings release.
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