Alibaba Health raises eyebrows with share price spike, followed by $1.4bn deal
Alibaba Health Information Technology announced a deal with its parent 12 days after the stock turned into a world beater for no apparent reason
Hong Kong — For the past few days, the question has been popping up on trading desks across Hong Kong: what’s up with Alibaba’s health unit? Largely ignored by analysts and stuck in a tight trading range for more than a year, the stock on May 17 suddenly turned into one of the world’s best performers for no apparent reason. It surged 56% in the span of six trading days, with turnover in one session almost doubling that of HSBC Holdings plc — a company about 20 times its size. The burst of activity is now raising eyebrows after Alibaba Health Information Technology announced a $1.4bn deal on Tuesday to buy assets from its e-commerce parent. The news boosted Ali Health’s stock by 3.8% to HK$7.03 in afternoon trading in Hong Kong, putting it on course for the highest close in almost two years. "Based on the verticality of that line, it would seem you have really, really strong initial evidence that something abnormal was happening" to Ali Health’s shares before Tuesday’s announcement, ...
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