Alibaba Hong Kong shares fall 5% after report of $5 billion convertible bond offering

Alibaba’s shares fell more than 5% on the Hong Kong Stock Exchange after reports that the company was considering selling $5 billion in convertible bonds. Bloomberg reported that Alibaba may start issuing bonds as early as this week to raise capital, citing anonymous sources. Alibaba rival JD.com recently conducted a similar $1.75 billion convertible bond offering. Alibaba is trying to strengthen its core e-commerce business and gain more market share in artificial intelligence amid a slowing Chinese economy. The company pledged more investment to “re-ignite” growth after a difficult 2023 amid a company restructuring.