Hong Kong-listed shares of Alibaba Group Holdings Ltd. continued to sink overnight, after U.S. regulators last week added the e-commerce giant to a list of Chinese-owned companies that could be delisted.
Alibaba shares fell as much as much as 5.1% in early trading in Hong Kong late Sunday night, Eastern time, though it had recently trimmed its losses to about 3%.
Alibaba’s U.S. shares tumbled more than 11% on Friday, after the U.S. Securities and Exchange Commission added it to a list of more than 250 Chinese companies that could face delisting on Wall Street due to failure to comply with financial-auditing requirements. The Wall Street Journal also reported Friday that Alibaba co-founder Jack Ma is preparing to give up control of Ant Group, the Chinese fintech company that is closely tied to Alibaba.
With an eye on a possible delisting from Wall Street, Alibaba last week said it is seeking to apply for a second primary listing in Hong Kong; it completed its secondary listing in Hong Kong in 2019, after going public on the New York Stock Exchange in 2014.
Alibaba is scheduled to report earnings Thursday, and analysts expect it to report its first-ever decline in quarterly revenue, according to FactSet.
Alibaba’s Hong Kong shares
9988,
have sunk nearly 20% over the past month, and are off 53% over the past year. Its U.S. shares
BABA,
are down 23% in the past month, and have fallen 54% over the past 12 months.
This post was originally published on Market Watch
