Here's Why Alibaba Shares Are Trading Lower Premarket After Brief Jump
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- Alibaba Group Holding Ltd (NYSE:BABA) shares gave up the gains in premarket trading after China snubbed previous reports of the revival of the IPO of its fintech affiliate Ant Group Co.
- The news of revival reflected possible ease in China's domestic tech crackdown, Bloomberg reports.
- China had reportedly formed a team to reassess Ant's share sale plans.
- Authorities also neared the final stages of issuing Ant a long-awaited license rendering it eligible for IPO and regulating it more like a bank, according to the Bloomberg report.
- The Ant's IPO sudden cancellation in November 2020 served as the poster boy of China's regulatory crackdown that swept across the country's internet sector leading to the mass exodus of foreign investors.
- Recent reports of ease in DiDi Global Inc (NYSE:DIDI) crackdown reflected possible relief in the country's aggressive regulatory crackdown.
- The country's top economic official also expressed support for the digital platform companies when the country battled an economic slowdown further spurred by its Covid-19 policies.
- China's lockdown relaxation and better than expected earnings results of the tech companies helped the Chinese tech companies beat their U.S. counterparts in the recent session.
- Price Action: BABA shares traded lower by 3.48% at $115.53 in the premarket on the last check Thursday.
- Photo via Wikimedia Commons