Alibaba plunges more than 10% at the opening of the Hong Kong Stock Exchange

Against the backdrop of Beijing’s turn of the screw against the tech sector, the action of the Chinese e-commerce giant fell 10.26% at the opening of trade on Friday. This drop comes in the wake of the news of a sharp drop in Alibaba’s quarterly results

Shares of Alibaba, the Chinese e-commerce giant, plunged 10.26% to 140 HKD (15.80 euros) on Friday when the Hong Kong Stock Exchange opened, causing indices to drop sharply Chinese Stock Exchanges.

The day before, Alibaba published its results, down sharply to 5.37 billion yuan (741.3 million euros) against 28.7 billion yuan a year earlier, a decline of 81%. Its turnover, on the other hand, is up 29% over one year, to 155 billion yuan (21.4 billion euros).

The company says it expects sales to grow by around 20 to 23% this year, while warning of “risks and uncertainties” that could penalize its activities.

Cut off by the authorities

The profit of the Chinese giant is weighed down by the tightening of regulations in China which is shaking the tech giants . Long regarded as a model of success for Chinese companies, Alibaba was the first to suffer retribution from the authorities.

A year ago, the Communist authorities had cut the wings of the private group, by stopping the gigantic IPO of its payment subsidiary Ant Group in Hong Kong , 48 hours before the event. Presented as the biggest fundraiser of all time, the operation should have brought him 27.4 billion euros.

The following month, Alibaba came under investigation for obstructing competition. The group founded by the whimsical Jack Ma has since been fined 2.3 billion euros in the spring.

And the authorities then extended their regulatory tightening to other lucrative sectors (private tutoring, meal delivery, entertainment, video games), losing billions of yuan in capital.