Alibaba shares dropped substantially

19.08.2021

Alibaba shares tumbled to historical minimum during trading on the Hong Kong Stock Exchange. At the maximum the stock lost 6.7 percent, according to trading data. Later the stock recovered slightly, but at the close it still remained in the minus by 5.54 percent, stopping at 162.1 Hong Kong dollars (20.81 US dollars).

Sales of securities of the Internet giant continued on the stock exchange. Alibaba’s depositary receipts lost 4 percent in preliminary trading on Thursday to $165.26 apiece. The reason for the fall was the actions of the Chinese authorities, which began to think about new restrictive measures for their own companies. Now they can affect the rights of drivers who work in large Internet companies, as well as video streaming services.

Earlier in August, shares in Chinese giants Tencent and Alibaba fell nearly five percent after the draft rules were released to regulate certain online activities. Among other things, online platforms will be obliged to open negative reviews and prohibit promoting only positive ones.