Alibaba investment sparks 259% rally in Chinese delivery firm
Getty Images / Xinhua News Agency
- YTO Express Holdings rose 259% on Wednesday after Alibaba increased its stake in the Chinese delivery company by nearly $ 1 billion.
- Alibaba increased its stake in YTO Express, one of the largest logistics service providers in China, from 10.5% to 22.5%.
- YTO Express Holdings’ parent company, YTO Express Group, also gained 10% on the news.
- YTO Express Holdings trades in Hong Kong while YTO Express Group trades in mainland China.
- You can find more stories on the Business Insider homepage.
If Alibaba takes a step, it will be noticed by investors.
This is also the case at YTO Express Holdings, which rose 259% on Wednesday after Alibaba increased its stake in the Chinese delivery company by $ 966 million.
YTO Express Holdings trades in Hong Kong.
Alibaba will buy 379.2 million shares from a controlling YTO shareholder. The investment will more than double Alibaba’s stake in YTO Express Holdings from 10.5% previously to 22.5%.
YTO Express is one of the largest Chinese logistics service providers and has seen a boom in business as Chinese consumers increased their e-commerce spending amid the COVID-19 pandemic.
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YTO Express Holdings’ parent company, YTO Express Group, also rose 10% on the news in mainland China.
Alibaba has invested in a number of logistics service providers over the years to better compete with JD.com, which has its own in-house network of delivery providers. Other logistics companies Alibaba has invested in include ZTO Express, STO Express and BEST Inc.
An Alibaba spokeswoman told the South China Morning Post about the investment: “We are excited to further strengthen the strategic partnership with YTO and focus on digitization and globalization to improve customer service.”
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