US-listed Alibaba shares plunged on Thursday after Chinese regulators announced they had launched antitrust investigations into the country’s largest technology company.
Separately, other watchdogs said they would hold talks with Ant Group, Alibaba’s fintech company, as the Chinese government ramps up its oversight of big tech companies and cracks down on Jack Ma’s tech empire in particular. , who is the founding partner of Ant Group and the second richest man in China.
US shares listed on Alibaba fell 7.1% to $238.02 in pre-market trading, reflecting losses suffered by Asia overnight, with the Hong Kong-listed shares closing down 8.1%.
This is the biggest drop in Alibaba shares registered in Asia in a single day since mid-November, when Ant Group was scheduled to debut on the trading market which would have been the largest launch in the stock market in the world, but was reversed at the last moment after China has imposed stricter supervision laws on financial services, and in separate statements Thursday, both Alibaba and Ant Group said they have been made aware of the regulatory measures and will work together to address them.