The Chinese giant, Alibaba Group Holding Ltd, has signed an agreement to purchase the South China Morning Post newspaper and other media assets of SCMP Group Ltd for $ 266 million.
In the report for the Stock Exchange of Hong Kong, SCMP Group Ltd has explained the cause of sale is the "uncertainty" of the future of traditional publishing industry, noting also that Alibaba is likely to be able to "get more benefits" of the media business.
As a result of the agreement the new owner will be the Chinese billionaire Jack Ma, who will replace the Malaysian businessman Robert Kuok. The deal comes at a time of high anxiety that China strengthens control over Hong Kong, and raised fears about the prospects of editorial independence.
However, the vice president of Alibaba, Joe Tsai, in a letter addressed to the users, hastened to dispel fears that Alibaba will jeopardize the editorial independence of the newspaper, adding that the world needs a "plurality of views when it comes to coverage of events in China."
In recent years, Alibaba has bought or invested in a large number of media and content companies. For example, in June, the company signed an agreement to buy a part of financial data provider – China Business News, for $ 194 million.
SCMP Group said it expects revenue of $ 1.4 billion Hong Kong dollars from the sale of assets. The company plans to use the funds to pay dividends.
As for the whole Chinese stock markets, these jumped more than 2 % on Monday, showed the best session for the month, as November data on industrial production exceeded forecasts, improving mood and destroying hopes of new stimulus measures.
However, shares of companies in the Chinese conglomerate Fosun Group fell as investors reacted to reports that the head of the company help the authorities in investigations.
The Shanghai Composite Index ended the day rising by 2.5 % to 3520.67 points, showing the best result since November 4.
CSI300 index added 2.9 % to 3711.32 points.
The data on economic activity in China in November exceeded expectations, with a growth in industrial production at five months peak, indicating that the wave of stimulus measures taken by Beijing may have strengthened the fragile economy.