Alibaba Stock Is Sliding Today!

  Alibaba Stock Is Sliding Today! As A Result Of The Pressure From The Chinese Government, The Shares Of The Technology Giant Decreased.

• What happened

Today, shares of Alibaba 9988 (HKG) HK$195,50 -1,80 (-%0,91) have tended to sink as the Chinese government's crackdown on big tech companies increases. Removing downloaded ridesharing apps, including Didi Global's DIDI (NYSE) $11,21 -0,70 (-%5,88) Tencent's WeChat and Alibaba's AliPay, seemed like a small fine against Alibaba and other Chinese companies. As a result, Alibaba, like many Chinese technology stocks, lost value today.

• So what

Alibaba kept slipping all week. Japan's resumption of the pre-Olympics state of emergency due to Covid-19, the decline in US stocks and concerns that recovery will be difficult triggered sales. China's Central Cyberspace Affairs Commission Office announced on Sunday Night that collecting user information in Didi's travel app found serious violations of the law, and yesterday, anti-monopoly regulators fined each of Alibaba's six subsidiaries $75,000.

As A Result Of The Pressure From The Chinese Government, The Shares Of The Technology Giant Decreased.

Ant Group's IPO was blocked after Alibaba Founder Jack Ma made disrespectful remarks to Chinese financial experts at a conference in November. The company, in April, was fined $2.8 billion following an investigation into the anti-monopoly law.Investors looked at this news positively as they thought that all the turmoil was gone, but as a result of the events that developed this week, the shares saw their lowest level again.

• Now What.

For a long time, the Chinese Government has been a nightmare for US investors. Indeed, these fears were not in vain. Against this, US auditors threatened to remove some Chinese Companies from their lists. Despite this, Alibaba is performing very well. Regardless, investors are expected to remain vigilant until they believe the Chinese threat is ineffective. Unfortunately, that doesn't seem very close.  

Source: The Motley Fool

 

You may also be interested in:

 

Coca-Cola (KO) Shares Outpacing Stock Market Gains