BABA Stock News: Alibaba Group Holding sinks as government regulations hit the gaming industry

NYSE:BABA fell by 2.54% on Wednesday as Chinese ADR stocks tumbled during the session.
The Chinese government targets the gaming industry and its influence over Chinese youth.
The fallout from the dropped charges in the recent scandal is only beginning.

Stocks Reporter FXStreet

NYSE:BABA continued its wild ride for shareholders on Wednesday as the stock erased all of the gains made during Tuesday’s rally. Shares of AliBaba dropped by 2.54% and closed the trading session at $170.71. The decline came as all three indices closed lower with the blue-chip Dow Jones sinking for the third straight session. Markets have had a tentative start to the week following the Labor Day Weekend, as rising cases of the COVID-19 delta variant has raised concerns about economic recovery. The session also saw numerous Chinese ADRs fall including Baidu (NASDAQ:BIDU), Didi (NYSE:DIDI), JD.com (NASDAQ:JD), and PinDuoDuo (NASDAQ:PDD).

Stay up to speed with hot stocks' news!

The reason why Chinese stocks were falling on Wednesday was another round of regulations from the Chinese government. This time, the target was the gaming industry and companies like Tencent (TCEHY) were feeling the heat. The new crackdown is meant to improve the mental and physical health of Chinese youth by limiting the amount of time that they can play online games. The move comes as Tencent had already installed a limit as to how often children can play every week. It also comes on the heels of the company announcing it will release League of Legends Mobile on September 15. Shares of Tencent were down 2.95% on Wednesday.

BABA stock price target

The fallout from the Chinese prosecution dropping the charges against a former AliBaba manager for forcible indecency, is just about to begin. The results underscore the problems that female employees have in the country, particularly surrounding work-related events and client meals. Since the charges have now been dropped, we can reasonably expect more outrage from the #MeToo movement in China, which could mean the scandal stays in the headlines for the foreseeable future.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD remains heavy near 1.1600 after hot EU inflation data

EUR/USD remains heavily offered near 1.1600, six-week lows, in the European session on Tuesday. The pair fails to find any inspiration from a surprise pick up in Eurozone inflation for February, as the US Dollar continues to attract safe haven flows amid escalating geopolitical tensions in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold falls below $5,300 as stronger USD counter Middle East woes

Gold attracts some intraday selling and falls below $5,300 on Tuesday. The US Dollar climbs to a fresh high since January 20 and turns out to be a key factor exerting downward pressure on the commodity. However, concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.

Stellar risks deeper losses as derivatives metrics turn negative

Stellar is trading red below $0.16 at the time of writing on Tuesday, after a slight recovery the previous day. Weakening derivatives data caps the recovery, while an unfavorable technical outlook projects a deeper correction for the XLM token in the upcoming days.

Middle East conflict ramps up a gear as energy price spike rips through markets

It’s another risk off day as geopolitical headwinds continue to batter financial markets. Although markets calmed during the US session and US stocks managed to post gains on Monday, this has not fed through to the European session, and stocks and bonds are sharply lower for a second day.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.