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Following a threat from the SEC to delist the company, Alibaba shares continue to fall in Hong Kong.

After U.S. regulators placed the Chinese e-commerce giant Alibaba Group Holdings Ltd. to a list of Chinese-owned businesses that could be delisted last week, shares of Alibaba Group Holdings Ltd. that are listed in Hong Kong continued to fall overnight.

In early trading in Hong Kong late Sunday night, local time on the East Coast, Alibaba share prices dropped as much as 5.1 percent, despite the fact that the company had just reduced its losses to approximately 3 percent.

After being added 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, Alibaba’s U.S. shares dropped by more than 11 percent on Friday. This happened after the U.S. Securities and Exchange Commission added Alibaba to the list. In a separate story published on Friday by the Wall Street Journal, it was stated that Jack Ma, one of the co-founders of Alibaba, is getting ready to relinquish control of Ant Group, a Chinese fintech company that is closely associated with Alibaba.

Alibaba announced last week that it is seeking to apply for a second primary listing in Hong Kong; the company completed its secondary listing in Hong Kong in 2019, after going public on the New York Stock Exchange in 2014. Alibaba is doing this with an eye on the possibility of being delisted from the Wall Street Stock Exchange.

According to FactSet, Alibaba is planning to release its earnings on Thursday, and analysts anticipate that the company will post its very first quarterly sales decline in its whole history.

Alibaba’s Hong Kong shares 9988,-2.20 percent have decreased by over 20 percent over the course of the past month, and they have decreased by 53 percent over the course of the previous year. Its shares traded in the United States (BABA, -11.12%) have dropped by 23 percent in the past month and have dropped by 54 percent over the course of the previous year.

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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