Shares of Alibaba have notched massive declines.
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are used to pain. But the stock is really hurting this time, with it on track for a 27% tumble in just four days.
Shares in the e-commerce giant were getting battered again Tuesday. Alibaba is caught up in a rout of China’s embattled tech sector, and there is little reason to believe a catalyst for a turnaround is coming any time soon.
Alibaba’s (ticker: BABA) U.S.-listed shares were down 5.5% in premarket trading Tuesday, following a 10.3% fall on Monday. That makes the stock poised to have lost more than 25% of its value since the end of last week — one of its worst periods ever. The stock is down more than 35% this year.
Alibaba’s Hong Kong-listed shares (9988.H.K.) declined 11.9% on Tuesday, the largest daily drop since the company listed there in 2019, beating the previous record of a 10.9% one-day slide, which was set on Monday.
The selloff goes beyond Alibaba. Shares in peer
(JD) — down 5% in Tuesday’s premarket — were set to have lost 35% of their market value since last Wednesday. The picture was similar for internet giant
(0700.H.K.), which has plunged 25% over the same period. Hong Kong’s Hang Seng Tech Index has fallen 22% in kind.
Traders face pressure to sell driven by regulatory, geopolitical, and health-economic factors that form a painful trifecta for Chinese stocks.
Chief among these are concerns that Chinese companies like Alibaba may face delisting in the U.S. Last week the Securities and Exchange Commission named Chinese companies that may be delisted if they don’t comply with accounting rules, and it’s expected more companies will be…