Alibaba shares in Hong Kong fell nearly 6% on October 22. It was their steepest decline in two months.
The sell-off followed a meeting between China’s State Administration for Market Regulation and major e-commerce platforms, including Alibaba. The regulator urged companies to improve product quality and strengthen consumer protection, prompting investor fears of another tech-sector crackdown.
The Hang Seng Tech Index fell by as much as 4.5%. Analysts said regulatory reminders are not new but continue to weigh on sentiment toward Chinese technology stocks. Alibaba’s decline was the largest contributor to the overall drop in the Hang Seng Index.