Chinese courier company YTO Express surges 180% after Alibaba raises stake

By Global Times Source: Published: 2020/9/2 16:00:53

The logo of Alibaba Group is seen at the company's headquarters in Hangzhou, East China's Zhejiang province File photo: VCG

Stocks of YTO Express soared on Wednesday after Alibaba increased its stake in the company, as the Chinese e-commerce giant seeks to expand its market share in the exploding courier industry.

Shares of YTO Express Group rose as much as 180 percent to HK$5.65 per share at 2 pm on Wednesday trading in Hong Kong. 

The rally came after YTO's controlling shareholder agreed to transfer 379 million shares to Alibaba which accounted for 12 percent stake of the company in a 6.6-million-yuan deal, according to a filing issued by the courier company on Tuesday.

The share transfer is aimed at promoting collaboration between the two parties in areas of express logistics, air freight, international networks and supply chains, and digital technology, the filing said.

The purchase of YTO stake marked the latest push by the Chinese e-commerce giant to gain a bigger say in China's express delivery industry in order to maintain its frontrunner status in China's Internet industry, Liu Dingding, a Beijing-based independent Internet analyst, told the Global Times on Wednesday.

"Alibaba's hike in YTO stake is a part of its effort to penetrate the logistics market in China to ensure its dominance in China's e-commerce industry in the next 10 years," Liu said.

This marks Alibaba's fifth significant investment in a Chinese courier company after it took a 14.65 percent stake of STO Express in a 4.66-billion-yuan deal in 2019.

The company also holds stakes in other three top express delivery players, including ZTO Express, Yunda Holding and Best Inc.

"In the future, Alibaba will continue to increase its input in the industry, as logistics and e-commerce are inseparable," Liu said.

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