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While markets are rallying across the board Friday, China’s Alibaba (NYSE:BABA) shares are having a rough day – falling 9.5% at the time of this writing.
At around 1 PM ET, the SEC published an update to its Holding Foreign Companies Accountable Act list and identified Alibaba as a company that now faces delisting. The company will have until August 19, 2022, to submit evidence disputing the identification.
It should be noted, however, that shares were already trading sharply lower before the SEC news update.
The early downside could have been in anticipation of the delisting notice, which was widely expected. In addition, traders discussed a lack of new stimulus policies from China as a possible reason for the downside move. Further, possible new regulatory crackdowns were another reason cited for today’s downside action.
