Alibaba Cloud's Full Spin-Off Plan Is Both Bold and Puzzling

Alibaba Cloud is one of the long-term drivers for the group, even though its growth temporarily slowed down in recent quarters and due to macro headwinds. This is why we find it puzzling that Alibaba has decided to fully spin off this business instead of retaining a minority stake at least. The company could also face timing problems if it chooses to list in the U.S., given that it will have to pass China's cybersecurity review within the planned time frame.