Core Viewpoint - Alibaba has reduced its stake in Sanjiang Shopping (601116.SH) from 32% to 29% within a year, indicating a strategic shift in its retail investment approach [1][2]. Group 1: Shareholding Changes - Alibaba's subsidiary, Hangzhou Alibaba Zeta Information Technology Co., Ltd. (referred to as "Ali Zeta"), sold 5.4768 million shares between November 27 and 28, reducing its shareholding from 30% to 29% [1]. - The total shareholding of Ali Zeta in Sanjiang Shopping has decreased from 32% to 29% over the past year [1][2]. Group 2: Reduction Plan - Ali Zeta plans to reduce its stake by up to 3%, with a maximum of 5.4768 million shares through centralized bidding and 10.9536 million shares through block trading, with the reduction period set from November 27 to February 26 of the following year [2]. - The reduction is part of a previously announced plan and is described as a normal reduction process [1]. Group 3: Strategic Implications - The investment in Sanjiang Shopping was initially seen as part of Alibaba's strategy in offline retail, but the recent stake reduction, along with the divestment from Intime and Yonghui Superstores, suggests a contraction in Alibaba's physical retail strategy [2]. - During a recent earnings call, Alibaba's management highlighted significant investments in instant retail and mentioned ongoing efforts to integrate existing businesses for better synergy in the consumer sector [2].