Alibaba will spin off its logistics arm Cainiao in an IPO in Hong Kong

Chinese e-commerce company Alibaba says it will spin off its logistics arm, Cainiao Smart Logistics Network, in an initial public offering in Hong Kong. It's the first business unit to go public following a major restructuring in Alibaba. Alibaba said in a filing Tuesday that it submitted a spin-off proposal to the Hong Kong Stock Exchange and that it has received confirmation to proceed. Alibaba will continue to me a majority shareholder in Cainiao, holding over 50% of the company and retaining it as a subsidiary. The company currently owns nearly a 70% stake in Cainiao, its main delivery arm that handles logistics and parcels for merchants both in China and abroad.