Shares of Alibaba (BABA) have dropped 4% to $175.35 at 11:48 a.m., which would be the lowest close since October 2019. Alibaba wasn’t the only stock getting hit hard.
(BIDU) has fallen 3.3% to $141.77,
(JD) has fallen 3.6% to $64.28. Chances are, if you pick a well-known Chinese stock, it’s trading lower on the day.
The new rules require internet companies “must not implement or assist in the implementation of unfair competition on the Internet, disrupt the order of market competition, affect fair transactions in the market,” according to Reuters, and aren’t permitted to use algorithms to attract users or pass on illegal information.
Alibaba stock has dropped 45% since its all-time high of $317.14 on Oct. 27, 2020, and now looks to be falling to where it found support in March 2020. It is also the same area where shares met resistance during the summer of 2019.
But nothing falls forever, not even Chinese internet stocks.
(DIDI), for instance, has bucked the selloff Tuesday. Its stock has gained 3% to $8.35 Tuesday but has lost more than 50% of its value since it IPOed in July.
Write to Ben Levisohn at firstname.lastname@example.org