BABA Stock News: Alibaba Group dips lower as Beijing drafts new regulations on data transfer

NYSE:BABA fell by 2.03% during Thursday’s trading session.
The Chinese Government is drafting new regulations that could affect Chinese tech companies.
AliBaba is looking to enter the data intelligence and analytics industry.

Stocks Reporter FXStreet

NYSE:BABA dropped lower again as downward selling pressure has hit growth stocks throughout the week. Much of this came from more hawkish remarks from Fed Chairman Powell as he reiterated the need to tackle inflation. On Thursday, shares of BABA dipped by 2.03% and closed the final trading session of June at $113.68. All three major averages closed lower for the third time this week as the S&P 500 closed out its worst first half of trading since 1970. On Thursday, the Dow Jones sank by 253 basis points, while the S&P 500 and NASDAQ posted losses of 0.88% and 1.33% respectively during the session.

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The Cyberspace Administration of China (CAC) has been drafting new regulations that would affect tech companies that collect user data. This includes firms like AliBaba, JD.Com (NASDAQ:JD), Tencent, and PinDuoDuo (NASDAQ:PDD). Beijing has emphasized the importance of protecting its citizen’s personal data over the past couple of years. This most famously resulted in the delisting of Chinese ride-hailing services Didi Global from the New York Stock Exchange earlier this year. In the proposed draft, companies like AliBaba would be legally responsible if anything were to happen during the transfer of personal data both domestically or overseas.

Alibaba stock forecast

In related news, AliBaba is looking to enter the data analytics and intelligence space through a new subsidiary called Lingyang Intelligence Service Company. The goal of this subsidiary is to provide enterprise digital intelligence services. AliBaba is calling this new service, DaaS or Data as a Service, and will likely start by providing this to domestic companies in China. This could pit AliBaba against other enterprise services companies like Salesforce.com (NYSE:CRM) and even Microsoft (NASDAQ:MSFT).

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