BABA-W (09988.HK)  +0.300 (+0.285%)    Short selling $1.01B; Ratio 11.966%   (BABA.US)      announced the issuance of over $12 billion worth of zero coupon convertible bonds (CB) exchangeable into shares of ALI HEALTH (00241.HK)  -0.020 (-0.474%)    Short selling $87.66M; Ratio 15.842%   , with an initial conversion price equivalent to $6.23 per ALI HEALTH share, a premium of 37.8% to its closing price yesterday (3 July).

The terms of this deal are similar to that of the zero-coupon CB issued by BIDU-SW (09888.HK)  0.000 (0.000%)    Short selling $99.46M; Ratio 25.678%   in March 2025 targeting shares of TRIP.COM-S (09961.HK)  +9.200 (+1.974%)    Short selling $175.62M; Ratio 15.552%   (TCOM.US)      , and the conversion price premium is also similar, according to a research report issued by CLSA.

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If the bonds are fully converted, BABA-W's shareholding in ALI HEALTH will be reduced from 64% to 52%. However, considering the higher conversion premium, the possibility of exercising the call by creditors is relatively low, implying that it is unlikely for BABA-W to reduce its stake significantly in the short term.

CLSA believed that BABA-W's main objective is not to cut its stake in ALI HEALTH, but to use its high-quality underlying assets to finance at a low coast. The broker added that BABA-W has already completed the placement before the market opens today, which is believed to minimize the share price volatility.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-07 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)