Monday, 2023 October 2

KEY STAT | Alibaba stocks plunge as antitrust regulation hits Singles’ Day

The share prices of China’s tech and internet companies sold off for a second day on Wednesday, wiping out more than USD 200 million in value according to Bloomberg, as the Chinese regulators are drafting new guidelines to rein in antitrust behavior in internet businesses such as e-commerce.

E-retailers Alibaba (NYSE: BABAHKEX: 9988) and (NASDAQ:JD; HKEX: 9618), which have been caught in the middle of its annual 11/11 online shopping festival, both dropped around 8% in Hong Kong on Wednesday, after already selling off 5% and 8% on the day before.

On Tuesday, the State Administration for Market Regulation issued an antitrust guideline draft that, if coming into effect, would prohibit internet platforms from engaging in certain practices like forcing vendors to sign exclusivity agreements, or discriminate consumers by providing different prices for the same product.

Earlier this month, regulators put forward a new microloan rule, right before fintech giant Ant Group’s IPO, forcing the firm to suspend the expected USD 34.5 billion public debut.

Read this: Ant’s IPO has to wait for the small loan regulation to be fully implemented, says expert

This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.

Julianna Wu
Julianna Wu
Data visualist & writer

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