Why Are Alibaba Shares Are Falling Premarket

Why Are Alibaba Shares Are Falling Premarket
  • Alibaba Group Holding Limited BABA shares dropped premarket after reports surfaced regarding the company moving its headquarters out of the country.
  • Alibaba is close to completing a new campus in Singapore, which could become its global headquarters, Barron's reports.
  • A local daily reported that Alibaba denied the speculation and that its headquarters would remain in the city of Hangzhou in the east of mainland China. The Singapore facility would house regional operations.
  • Alibaba has been hit severely by China's sweeping crackdown on the tech sector, which started with the shelving of Alibaba fintech affiliate Ant Group's IPO in November 2020.
  • Alibaba had to cough up a record penalty for antitrust violations. Founder Jack Ma had to forego his controlling position in Ant.
  • Ma, who maintained a low profile since China's regulatory crackdown amid the massive Covid surge, resurfaced in a short video on the New Year, citing 'difficult' and 'extraordinary' year to the rural teachers in the country.
  • The media last spotted Ma in Tokyo, living a quiet and peaceful life amid the big tech crackdown in his home country.
  • Price Action: BABA shares traded lower by 5.74% at $111.59 in the premarket on the last check Monday.

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