Alibaba, the Chinese e-commerce conglomerate that made the biggest IPO in U.S. history last September, had over $30 billion wiped from its market capitalization in two days ending yesterday. That was just after it got into a rare public brawl with a Chinese regulator, an apparent signal that its political fortunes have shifted decisively under the Xi Jinping administration.
The hit to Alibaba’s share price corresponded with some worse-than-expected earnings, but a dispute between a major Chinese company and the regime itself is rare indeed in China, and was enough to spook investors.
It is disconcerting to investors that the Chinese government is the one telling Alibaba that it has merchandise that may not be authentic.
