Alibaba (BABA) Stock Sinks 5% After Potential Audit Issues
Alibaba (BABA) stock lost around 5% of its value after news that there were some potential audit issues. Analysts are pointing out that an auditing activity is taking place for the US-listed Chinese stocks and that it is not going well!
After the news, BABA stock shed some of its value and was the last trading at $77.13, which shows the investor's fear. Experts believe that is a lot of things to blame for this downward movement... The first one is the high expectancy of more interest rate hikes from the Fed. Secondly, the talks between the Chinese and the US government over the auditing issues are not going smoothly.
Third but not least, the Chinese Yuan is losing ground against the US Dollar, which has become evident in the case of Chinese stocks! So that's also a major reason why Chinese stocks such as the BABA have lost ground.
US Stocks Are Also Tumbling
The BoE actions over the last few weeks have lent some support to the US stocks, but it was only shortlived. A quick look at the US stock reveals that it is tumbling once again. All the major indices, such as the Dow Jones, S&P 500, and the Nasdaq, recorded percentage losses. However, most of the downward movement could be attributed to the tech stocks - So this is yet another reason why Alibaba (BABA) lost some of its value recently!
In fact, major tech companies such as Amazon and Apple are also struggling with these factors. Under economic conditions like this, it is only natural for Alibaba (BABA) to also enter a defensive mode.
Talks Between China And USA Not Going Smoothly
Reports are coming out that the talks between the USA and China are also rocky. The entire process takes a long time - The US officials ask the Chinese for a specific document, and then the Chinese officials consider the request to ensure that it doesn't involve any state secrets. In short, this back and forth is taking a lot of time!