Hong Kong shares of Alibaba Group surged on Wednesday, following a spike in the United States traded shares of the company after reports surfaced claiming that co-founders Jack Ma and Joe Tsai were acquiring hundreds of millions of dollars worth of shares in the e-commerce giant.

Alibaba’s US-traded shares, listed on the New York Stock Exchange (NYSE), gained as much as 8.6% on Tuesday. The group’s HK shares were trading 5.17% higher at HK$71.15.

Tsai’s family office acquired nearly 20 lakh Alibaba’s ADR (American depositary receipt) shares worth $152 million through an investment vehicle, Blue Pool Management, in the fourth quarter of the 2023 calendar year. Tsai is the current chairman of the e-commerce firm. 

Jack Ma acquired the company’s Hong Kong shares worth $50 million during the same period. Ma, who stepped down as executive chairman in 2019, still held a substantial stake in Alibaba. 

After its six-way split plan fell through, Alibaba has witnessed a heavy sell-off over the past year. The e-commerce giant has also been facing increased competition in its home market from PDD Holdings with its hit shopping app Temu.