GIC, Temasek raise Alibaba stakes

The GIC corporate logo seen during staff conference in Singapore, on April 21, 2008. PHOTO: BLOOMBERG

GIC and Temasek Holdings have snapped up about US$1 billion (S$1.38 billion) of Alibaba's shares, the Chinese e-commerce company said yesterday.

They are buying part of the US$8.9 billion of shares that Alibaba's largest shareholder, Japan's SoftBank Group, is selling.

The move to raise their stakes in the world's largest e-commerce platform is not surprising, CIMB Private Banking economist Song Seng Wun said.

"China's potential as a consumer market and Alibaba's leading position are a given. Beyond that, it has an evolving business model that is also tapping into consumer financing. It ticks all the right boxes as a tech investment for long-term growth," he added.

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A version of this article appeared in the print edition of The Straits Times on June 03, 2016, with the headline GIC, Temasek raise Alibaba stakes. Subscribe