In a call with investors on Thursday, Alibaba Group made an effort to reassure them that its move to restructure and divide into six units was made to make the business more “nimble” in response to market changes. CEO Daniel Zhang told investors:
“We believe this will allow all of our businesses to become more flexible, improve corporate decision-making, and adapt quicker to market developments. Alibaba’s restructure is considered as a sign of Beijing changing its position, analysts told CNBC.
China’s regulatory crackdown on its internet giants, which has been ongoing since 2020, caused a $1 trillion wipeout of equities of the nation’s largest companies.