JPMorgan Chase & Co. decreased its holdings in Alibaba Group Holding Limited (9988.HK) on June 11, according to Hong Kong stock exchange filings. The U.S. financial institution’s stake in the Chinese e-commerce giant declined from 6.26% to 5.94%, with transactions executed at an average price of HK$118.4452 per share.
Transaction Details and Market Context
The share disposal occurred during a period of:
- Sector Volatility: Hang Seng Tech Index fluctuating between 4,200-4,400 range
- Regulatory Developments: China finalizing new platform economy guidelines
- Technical Levels: Alibaba shares testing key support near HK$115
At the reported average price, the transaction would represent approximately 32 million shares worth HK485 million), based on Alibaba’s current market capitalization.
Analyst Perspectives on the Move
Market observers interpreted the adjustment as:
- Standard Rebalancing: Part of JPMorgan’s regular portfolio management
- Risk Management: Prudent reduction ahead of Q2 earnings season
- Sector Rotation: Shift toward domestic consumption plays
The reduction follows JPMorgan’s upgrade of Alibaba to “overweight” in April, suggesting the move likely reflects technical factors rather than fundamental concerns. Alibaba shares have gained 12% since June 11, closing at HK$125.80 on Thursday.
Institutional Ownership Landscape
Other major holders have shown mixed recent activity:
- BlackRock: Maintained 3.2% stake through Q1
- Temasek: Slightly increased position to 2.8%
- Capital Group: Reduced exposure by 0.5% in May
The filing confirms JPMorgan remains Alibaba’s second-largest institutional shareholder despite the partial divestment. Market participants will monitor whether other global funds follow suit in adjusting China tech exposures ahead of mid-year portfolio reviews.
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