China Tech's Dwindling Fortunes Fuel More Alibaba Stake Selloff Speculations By SoftBank - Alibaba Gr Holding (NYSE:BABA), SoftBank Group (OTC:SFTBF), SoftBank Group (OTC:SFTBY)

The dwindling fortunes of the Chinese tech shares have prompted concerns over Alibaba Group Holding Ltd BABA stake selloff by SoftBank Group Corp SFTBY SFTBF, the Wall Street Journal reports.
SoftBank's single most significant investment in the e-commerce giant was hit hard by the domestic crackdown.
The Nasdaq Golden Dragon China Index of U.S.-listed Chinese stocks has declined 52% over the 12 months through March 25. Alibaba plunged 49%, and SoftBank's Tokyo-listed stock decreased 40%.
Also Read: JPMorgan Downgrades Alibaba and Other China Tech Stocks Following Selloff; Calls It "Uninvestable" For Next 6-12 Months
Falling valuations for SoftBank's holdings pushed it close to its self-imposed debt limit of a loan-to-value ratio of 25%, implying limits on new borrowing, investments, and share buybacks, as per an analyst.
Alibaba's contribution to SoftBank's overall net asset value plunged to 24% as of December 2021, down from a September 2020 peak of 60, WSJ noted%.
From April through December 2021, SoftBank raised $6.9 billion of asset-backed financing using Alibaba shares. I
SoftBank's asset-backed financing using Alibaba stock was worth ~$25.8 billion in 2021 or ~35% of its Alibaba holding.
Investors saw SoftBank potentially sell part of its near-25% stake in Alibaba.
However, China's latest assurances to restore market confidence and Alibaba's buyback boost helped the Chinese company's shares recoup most of their year-to-date losses.
Price Action: BABA shares traded higher by 0.67% at $113.75 on the last check Monday.

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