Alibaba Calls Off Cainiao’s IPO After Market Slump Worsens (2)

Alibaba Group Holding Ltd. is calling off an initial public offering for its Cainiao logistics arm in Hong Kong, shelving a much-anticipated debut that could have raised more than $1 billion.

China’s e-commerce pioneer, which owns 64% of Cainiao, said in a Tuesday filing it now plans to buy out all remaining stock held by investors and employees for $3.75 billion. The company decided to postpone the transaction because of poor market conditions in Hong Kong, people familiar with the matter said. It lost its taste for the deal this year as stocks there waned, the people said, asking ...