Alibaba proposes a spin-off and separate listing for Banma Network Technology on HKEX.
by VT Markets
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Aug 21, 2025
Alibaba plans to list Banma Network Technology separately on the Hong Kong Stock Exchange (HKEX). The company will keep more than 30% ownership of Banma, though final details about the spin-off are still being worked out.
Banma intends to list its shares on the main board of the HKEX. Alibaba has confirmed that it will maintain a significant stake to stay actively involved in Banma’s operations.
The spin-off of Banma Network Technology creates some short-term uncertainty about Alibaba’s value, which we see as a clear chance to capitalize on. We have already noticed the implied volatility on BABA’s front-month options rose by four percentage points to 42% since the announcement. This makes selling options, like covered calls or cash-secured puts, more appealing for those who expect the stock to stay stable in the upcoming weeks.
We now need to recalculate Alibaba’s sum-of-the-parts valuation, which will likely cause some price fluctuations. With China’s connected vehicle market projected to grow by about 18% in the first half of 2025, a successful IPO for Banma could unlock substantial value. Traders might consider long-dated bull call spreads to take advantage of this possible positive shift while managing their risk.
Looking back at the market’s response to the Cainiao and Freshippo IPO talks in 2023 and 2024 offers helpful insights. Initially, the market reacted positively, but it often drifted as it awaited clear financial details. This pattern suggests that any initial price spike in BABA shares might not hold, making it wise to wait for more information before making strong predictions.
Additionally, the health of the Hong Kong IPO market is crucial to watch. As of July 2025, fundraising on the exchange has increased by 25% year-over-year, but interest in new tech listings remains weak. Therefore, the performance of other recent tech IPOs on the Hang Seng will be a key indicator of how Banma will be received.
by VT Markets
Aug 21, 2025
Insights 
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