Alibaba (BABA) Stock Drops Over 13% This Week Due To China’s Government Investigating Its Official: How Alibaba Got In The Way?

The ruling party’s watchdog in the city of Hangzhou is investigating the head of its local government for multiple violations. The investigation casts a spotlight on the area that’s home to Alibaba Group and Ant Group By Jack Ma. The stock closed at $157.96 in yesterday’s trading session. The stock falls over 13% this week. Alibaba Group fell 3.7% in Hong Kong despite the tech-heavy Hang Seng Index gaining 2.4%.

The party’s watchdog has launched an investigation into Zhou for suspected violations of discipline and state law. The Standing Committee of the city of Hangzhou held a meeting on Saturday to discuss the investigation on the local official, Zhou Yongping. The meeting also agreed to carry out a campaign against corruption.

Social media accounts claimed that Zhou’s family bought shares in a fintech company before its IPO plans were scrapped. Ant Group denied that certain individuals bought shares ahead of its IPO last year. The decline in the Chinese e-commerce giant overshadowed the rebound in other stocks.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.