China's Alibaba Group Holding Ltd is putting a potential Hong Kong initial public offering of its Freshippo grocery chain on hold amid weak sentiment for consumer stocks, Bloomberg News reported on Friday citing sources.

Alibaba has concluded it could likely achieve a valuation of around $4 billion for Freshippo, which is lower than the $6 billion to $10 billion value it was targeting when it considered raising a private funding round last year, the report said.

(Reporting by Shubhendu Deshmukh in Bengaluru; Editing by Anil D'Silva)