The Chinese e-commerce giant is down more than 10 percent on Friday morning. The fall helps demolish the Hong Kong Stock Exchange.
Stock markets in Asia Pacific were mixed on Friday morning.
This is what it looked like around 05.35:
- The Nikkei 225 index in Tokyo rose 0.47%
- Hong Kong’s Hang Seng fell 1.76 percent
- Kospi in Seoul rose 0.44%
- The Shanghai Composite Index is up 0.34%.
- The FTSE Straits Times Index in Singapore is down 0.18%.
- The ASX 200 index in Sydney rose 0.17 percent
Fall by more than 10 percent
Alibaba’s share was down 10.38 percent at around 5.35 on Friday morning. This happens after the company’s announcement About disappointing sales in its quarterly report on Thursday.
The e-commerce giant generated 200.69 billion yuan, equivalent to about 275 billion crowns. Up front, revenue was expected to end at 206.17 billion yuan, according to Bloomberg.
A drop in Alibaba shares dragged the Hong Kong stock market down, according to CNBC. Early Friday morning, Norway time, the Hang Seng Index was down 1.76 percent.
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It indicated an increase in competition and a decrease in consumption
The drop in Alibaba’s revenue reflects weak growth in the Chinese economy over the past year, according to analysts, according to Reuters.
“After significant weakness in retail statistics from the national statistics agency in the past two months, it is not surprising that Alibaba missed this quarter,” an analyst at Citi said in a note, according to the news agency.
Alibaba CEO Daniel Zhang cited increased competition and reduced consumption as reasons for the company’s weak growth in the quarter, according to Reuters.
In the third quarter of the year, China’s economic growth slowed. Growth closed at 4.9 percent over the same period last year, down 7.9 percent from the previous quarter.
In the past year, the Chinese authorities have also taken several steps to toughen up big tech companies.
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