On Tuesday, the Chinese State Administration for Market Regulation issued a draft issue according to which tightening regulatory scrutiny would be imposed on e-commerce marketplaces and payment services to prevent monopolistic behavior. Market regulators will seek reviews and feedback from the public for the draft rules until Nov. 30.
The draft rules come one week after the postponement of Ant’s initial public offering which would have been the largest of all time. Alibaba holds a roughly 33% stake in Ant Group.
Ant Group was unable to fulfill required additional regulatory conditions. The two events have wiped out 12.36% of Alibaba’s market capitalization in just six trading days.
On the other hand, Alibaba is currently offering round-the-clock discounts ahead of Singles Day. Last year, Alibaba generated $38.4 billion in revenue across all of its platforms on Single Day. This year that number is expected to be at least $45 billion, a near 20% increase YoY. Record sales could help return the stock back to all-time highs.
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