Former CEO of China's Alibaba quits cloud business in surprise move during its leadership reshuffle

The former CEO of Alibaba has resigned as head of its cloud computing business in a surprise move as the Chinese e-commerce empire wraps up a leadership reshuffle. The company's Hong Kong-traded shares sank 3.5% after Monday's announcement. Alibaba said Daniel Zhang stepped down on the same day he gave up his roles as Alibaba's CEO and chairman. It said Eddie Wu, its new CEO, will also head its cloud unit. Wu and Alibaba's new chairman Joseph Tsai assumed their new roles Monday, with Alibaba saying it has “completed its leadership transition.” Alibaba said it will invest $1 billion in a technology fund Zhang will establish to support the firm's future growth.