Alibaba lost $21 billion in market value

Alibaba Group stunned investors late last week after it announced it would suspend plans to list its cloud computing division, Cloud Intelligence Group, while also revealing that Jack Ma, the Chinese giant's co-founder, plans to sell some of his shares. The news has shaken confidence in the tech group and raised doubts about the company's upcoming restructuring - revealed just months ago, according to Forbes.

Shares in the dual-listed company fell 10 percent on Friday in Hong Kong after losing 9 percent overnight in New York, which has shaved more than $20 billion from the Chinese giant's market value. Investors reacted after Alibaba announced its profit for the quarter ended September 30, when it was revealed that plans to spin off Cloud Intelligence Group had been halted.

In a separate filing with the US Securities and Exchange Commission (SEC), Alibaba also disclosed that two private vehicles linked to a fund of co-founder Jack Ma plan to sell nearly $900 million worth of Alibaba shares. Ma is currently China's sixth-richest billionaire, with a net worth of $25.1 billion, according to Forbes estimates.

An Alibaba spokesman did not respond to requests for comment on the status of the IPO, which represents a departure from the strategy announced in May, when Cloud Intelligence Group said it would separate from its parent company within the next 12 months and will be listed independently.

Alibaba blames U.S. restrictions on chip exports, which have made it difficult for Chinese firms to source critical chips from American companies. The US banned sales of Nvidia's advanced H800 and A800 chips, focused on artificial intelligence, to Chinese companies in October.

Alibaba stated that these restrictions "have created uncertainties for Cloud Intelligence Group's prospects" and it is possible that "a complete separation of the division will not achieve the intended effect of increasing shareholder value". In this context, the Chinese giant informed that it will focus on developing a sustainable growth model for the division.

Alibaba reported a net profit of 27.7 billion yuan ($3.8 billion) for the quarter ended in September, below the 29.7 billion yuan expected by analysts. Revenue was in line with expectations, reaching 224.79 billion yuan, up 9% from the same period last year.

The company announced that it will issue its first annual cash dividend in 2023. Alibaba's board of directors approved an annual dividend of $0.125 per common share, or $1 per US-listed ADR.

The total value of the dividends will be approximately $2.5 billion.