The Alibaba share is apparently back: After the papers of the Chinese trading giant had already improved on Monday from previously 134.60 to 136.70 euros, it went up on Tuesday in early trading in Frankfurt by almost another four percent. 141.40 euros were on the price list around half past nine, so the Alibaba share also pushed back into the plus on a weekly basis. What caused the change in sentiment is unclear. Because the group is still under pressure. From all sides.
Alibaba’s working hours in focus
For example, the site Der Aktionär reported that China’s top judicial authority and the government’s labor affairs authority had warned towards the end of the previous trading week that the practices of Alibaba and other tech companies such as Tencent or JD.com violate Chinese labor law. The companies typically work from 9 a.m. to 9 p.m., six days a week, he said. “996” was therefore the usual formula at Alibaba until now, which is now probably on the line.
It is not the only problem with the trading group: just over a week ago, it became known that authorities have begun another investigation directed against the party leader of the hometown of Alibaba Group Holding Ltd. and its core holding Ant Group Co. China is investigating Hangzhou’s top government official for “serious disciplinary violations,” according to the report. The man allegedly bought shares in the Alibaba subsidiary shortly before its aborted IPO, according to media reports. Ant Group denies this.
Share further in the monthly minus
Plenty of problems, then, for Alibaba, which are still far from being out of the world. In addition, China has massively expanded regulation of emerging tech companies in the country as a whole. So it’s no surprise that Alibaba’s share price is still down 15 percent for the month, despite the current improvement.