Alibaba-Owned Hypermarket Chain Sun Art Said to Draw PE Interest

Alibaba Group Holding Ltd.’s majority stake in Chinese hypermarket chain Sun Art Retail Group Ltd. is attracting preliminary interest from private equity firms, according to people familiar with the matter.

Potential suitors including DCP Capital and Hillhouse Investmenthave been considering buying part or all of the Chinese technology company’s roughly 79% holding in Sun Art, the people said, asking not to be identified because the matter is private. Shares of Sun Art have climbed 28% this year, giving the company a market value of about $2.2 billion.

Sun Art was suspended from trading in Hong Kong on Friday ...