Alibaba has kick-started the sale of 500 million shares as part of the Chinese retail group’s plan to raise HK$100bn (£10bn) through a Hong Kong listing.

The move, which represents the biggest share sale by any company in 2019, will help Alibaba “to innovate and invest for the long term”, the etail titan said.

The initial batch of 500 million shares will start trading on the Hong Kong stock exchange next week at a small discount to its New York-listed shares. Those are currently worth $185 a share, valuing Alibaba at $483bn.

Alibaba had hoped to raise as much as £20bn when it initially filed for the Hong Kong listing in June, but said it will offer up a further 75 million shares if there is enough demand from investors.

Hong Kong tumbled into recession just weeks ago, after economic activity dropped 3% in the three months to September. The fall was blamed on a downturn in exports and the collapse of consumer and tourist spending.

However, Alibaba chair and chief executive Daniel Zhang, who succeeded founder Jack Ma in September, said last week: “We continue to believe the future of Hong Kong remains bright. We hope we can contribute in our small way, and participate in the future of Hong Kong.”

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