In 2023, Alibaba shelved the potential Hong Kong initial public offering (IPO) of Freshippo due to subdued investor sentiment in the consumer stocks sector. Alibaba had revised its valuation expectations for Freshippo to $4 billion in the listing, down from its earlier estimates of $6 billion to $10 billion. Although discussions with potential buyers are in the preliminary stages, the intention to divest signals a significant shift in Alibaba's business strategy, Reuters reports. This move is part of a broader restructuring within Alibaba and comes amidst increased regulatory scrutiny in China.