Shares in ChinaVision Media, a media and program content production company that Chinese e-commerce giant Alibaba Group tentatively agreed to buy 60% of in March for HK$6.2 billion, or $800 million, fell by 6.5% in Hong Kong on Tuesday in a second day of volatile trading.
Shares soared by 17% on Monday amid apparent speculation that Alibaba may transfer sell some of its assets to the company.
ChinaVision said in a statement at the Hong Kong Stock Exchange on Monday after the close of trade that "whilst there have been preliminary discussions between the Company and Alibaba in relation to the future development of the Group, so far there was no discussion in relation to any assets injection by Alibaba" into ChinaVision Media.
ChinaVision Media's shares have nearly tripled since the company announced on March 11 that Alibaba had agreed to purchase a controlling stake. The purchase, which is subject to shareholder approval, would potentially expand Alibaba's user base.
Alibaba last week filed for an IPO in the U.S. that may be the world's largest ever.
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