Alibaba has announced that it will be shutting down its Tmall service in Hong Kong on October 30, 2022. Reported Yahoo Finance.
Tmall is Alibaba’s online retail platform selling major Chinese and global brands. The e-commerce giant said in an official announcement that it made the decision based on “business strategy adjustment” and will continue to provide payment and delivery services to local residents in Hong Kong via its Taobao Marketplace.
Alibaba launched the Tmall service in Hong Kong in May 2021, selling fresh produce and consumer products in collaboration with big-name brands such as Adidas. However, the company has now decided to shut down the service due to strategic adjustments.
This news will likely come as a disappointment to many residents in Hong Kong who have come to rely on Tmall for their shop.
Alibaba, China’s largest e-commerce company, is looking to continue to provide payment and delivery services to residents in Hong Kong via its Taobao Marketplace, even as it prepares to delist from the city’s stock exchange.
This comes as the company tries to navigate a new regulatory environment in Hong Kong, which has seen a number of high-profile delistings in recent months.
Alibaba did not give a reason for the move, but it is likely that the company is hoping to avoid a similar fate.
Price Action: Alibaba stock (symbol: BABA) increased in price by 0.88% to $101.50 on Monday morning.
