Alibaba shares soar to 4-year high, lifted by bullish AI investment, Cathie Wood’s Ark ETF
Prominent US fund manager buys US$16.3 million worth of shares in a vote of confidence for the firm’s focus on AI and on-demand delivery services
Alibaba Group Holding’s ambitious investment in artificial intelligence and an endorsement by one of the world’s most influential technology investors lifted its Hong Kong shares to a four-year high.
Wood’s Ark Fintech Innovation ETF bought US$8.18 million of Alibaba’s American depositary receipts (ADRs) on Monday, and her Ark Next Generation Internet ETF made a US$8.1 million investment in the securities on the same day, according to holdings reports by the two funds. Wood is the founder of New York-based Ark Investment Management.
Alibaba’s Hong Kong-listed shares jumped 9.2 per cent to HK$174 on Wednesday, the highest close since September 25, 2021, as trading remained open in the city despite the strongest typhoon since 2018. The ADRs dropped 0.7 per cent to US$163.08 in New York on Tuesday, also near a four-year high. Eight of Alibaba’s Hong Kong shares can be converted into an ADR. Alibaba owns the South China Morning Post.