Alibaba's Hong Kong Shares Drop 5% on Report of $5 Billion Convertible Bond Offering

Alibaba's shares on the Hong Kong stock exchange fell over 5% after a report that the company is considering selling $5 billion in convertible bonds. Bloomberg reported that Alibaba could launch the bond offering as early as this week to raise capital, citing anonymous sources. Alibaba's rival JD.com recently did a similar $1.75 billion convertible bond offering. Alibaba is trying to boost its core e-commerce business and capture more market share in artificial intelligence as the Chinese economy slows. The company has pledged more investments to "reignite" growth after a challenging 2023 with a corporate overhaul.