Alibaba (BABA) announced on Tuesday, November 10, 2026, that the Hong Kong stock exchange has confirmed the company may proceed with the spin-off (a split with a separate listing) of T-Head, a wholly owned subsidiary that supplies full-stack chips for data centers in China. On September 11, 2026, T-Head confidentially filed an application to list its H shares on the Main Board of the Hong Kong stock exchange.
The transaction is expected to take place through a global offering of H shares, with a public offering in Hong Kong and a placement to institutional and professional investors. After completion, T-Head is expected to remain a subsidiary of Alibaba. The size and structure of the offering, as well as the reduction in Alibaba's stake in T-Head, have not yet been determined.
Alibaba says the transaction should allow T-Head and the rest of the group to be valued separately, attract investors interested in the chip business, and give T-Head direct access to capital markets and bank credit. The Hong Kong stock exchange granted a waiver from the rule requiring that Alibaba shareholders be given preferential entitlement to T-Head shares. Among the reasons are U.S. legal requirements, which would force T-Head to conduct a public offering in the U.S., and Chinese legal restrictions. The company also notes that the transaction is not significant relative to its assets, revenue and profit.
Alibaba expects the spin-off not to be considered a transaction subject to disclosure under Hong Kong stock exchange rules, since the applicable ratios are expected to be below 5%. It also should not affect its dual primary listing in Hong Kong and on the NYSE. The transaction depends on approval from the Hong Kong stock exchange's listing committee, filing with the China Securities Regulatory Commission, and final decisions by Alibaba and T-Head. The company says there is no assurance that the transaction will take place or when.
