Alibaba Group Holding Ltd. has agreed to sell its over 70% stake in Sun Art Retail Group Ltd. to private equity firm DCP Capital for up to $1.6 billion. The sale marks a significant retreat from Alibaba's physical retail investments as it shifts focus to its core online commerce operations under CEO Eddie Wu. The divestment comes at a loss, with Alibaba having paid $3.6 billion in 2020 to double its stake in Sun Art, now valued at about $3 billion. Sun Art's shares dropped 35% in Hong Kong trading, while Alibaba's shares slid more than 1%.