Why Alibaba Shares Soar?

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

Alibaba stocks continued to trade lower last week amid continued volatility in Chinese stocks amid regulatory concerns. The SEC has reportedly begun issuing additional disclosure requirements for Chinese companies seeking a U.S. listing.

Alibaba shares also traded lower last week after a WSJ report titled “China plans to ban US IPOs for data-heavy tech companies.”

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

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

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