Alibaba shares turned positive in morning trading, reversed initial losses.

Alibaba’s top two executives bought about HK$120 million ($15.3 million) worth of their company’s shares following a stock slump triggered by a capital raise fueled by AI spending.

Chairman Joseph Tsai purchased about HK$81 million worth of shares in Hong Kong on Monday, while Chief Executive Officer Eddie Wu acquired a stake worth around HK$39 million, according to the company’s disclosure filings. Combined, both executives own less than 2% of the company.

Alibaba raised HK$80 billion from new shares to support its AI investment on Monday. The deal, which was priced at a 3.6% discount to its Friday closing price in the US, attracted demand from institutional investors for almost three times the size of the offering, people familiar with the matter told Bloomberg. Alibaba’s shares fell 8.5% in Hong Kong, the biggest drop since early 2025.