Hong Kong market sank on Friday on an otherwise mixed day for Asian markets, with Chinese e-commerce titan Alibaba tanking more than 10% after warning of a weaker outlook. Alibaba said on Thursday that net profit tumbled 81% in the second quarter and revenue grew less than forecast as it was hit by the impact of slowing economic growth and a government crackdown on the tech sector. The firm, once the poster child of China’s high-flying private enterprises, also said income growth over the rest of the fiscal year fell short of expectations, adding that certain factors could further impact results including “changes in laws, regulations and (the) regulatory environment” such as those related to privacy and data. The 10.7% loss in Alibaba’s Hong Kong stock reflected a more than 11% fall in its New York shares and comes after a painful year that has seen the firm in the crosshairs of Beijing’s regulatory drive to rein in companies it thought were growing too powerful.
Published in The Express Tribune, November 20th, 2021.
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