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Why Alibaba Shares Are Rising

Shares of Chinese companies, including Alibaba Group Holding Ltd (NYSE: BABA), are trading higher as the sector rebounds from recent weakness despite continued regulatory concerns.

Benzinga · 09/01/2021 12:10

Shares of Chinese companies, including Alibaba Group Holding Ltd (NYSE:BABA), are trading higher as the sector rebounds from recent weakness despite continued regulatory concerns. The gaming, education and technology sectors have been under regulatory pressure this year, which has driven volatility in the overall Chinese market.

Alibaba shares were otherwise trading lower last week on continued volatility in Chinese stocks amid regulatory concerns. The SEC reportedly started issuing additional disclosure requirements to Chinese companies seeking a US listing.

Alibaba shares were also trading lower last week following a WSJ report titled 'China Plans to Ban U.S. IPOs for Data-Heavy Tech Firms.'

Alibaba is the world's largest online and mobile commerce company, measured by GMV (CNY 6.6 trillion/USD 1 trillion for the fiscal year ended March 2020). Alibaba operates China's most-visited online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).

Alibaba is trading higher by 4.3% at $174.20. Alibaba has a 52-week high of $319.32 and a 52-week low of $152.80.