Alibaba's Chairman Jack Ma and Vice Chairman Joseph Tsai are planning to raise more than 2 billion U.S. dollars through a margin loan pledged against the company's stock.
Sources say the money raised may be used to fund Blue Pool Capital, a Hong Kong-based family office set up to manage the wealth of Alibaba executives.
Rumor says the loan may be announced as early as this month, after a lockup period on stock owned by Ma and Tsai expires on September 21.
However, the final decision has not been made and the deal may still fall through.
Alibaba's stock has been falling since its high in November on the New York Stock Exchanges, and last month dropped below its September 2014 IPO.