Alibaba Raises HK$800 Billion via Share Placement as AI Spending Rises
In 2026 Q2, AI investment by Alibaba, Tencent, and Baidu surged to 131.8 billion yuan, with combined free cash flow outflows of 66.424 billion yuan. Despite a market oversubscription, Alibaba issued additional shares to raise another HK$800 billion, diluting original shareholders by about 3.8%. Alibaba’s Hong Kong shares fell more than 8% the same day, with market value dropping over HK$200 billion.