Hong Kong-listed shares of Alibaba Group Holdings Ltd. continued to sink overnight, after U.S. regulators last week added the e-commerce giant to a list of Chinese-owned companies that could be delisted.
Alibaba shares fell as much as much as 5.1% in early trading in Hong Kong late Sunday night, Eastern time, though it had recently trimmed its losses to about 3%.
With an eye on a possible delisting from Wall Street, Alibaba last week said it is seeking to apply for a second primary listing in Hong Kong; it completed its secondary listing in Hong Kong in 2019, after going public on the New York Stock Exchange in 2014.
Alibaba is scheduled to report earnings Thursday, and analysts expect it to report its first-ever decline in quarterly revenue, according to FactSet.
Alibaba’s Hong Kong shares
have sunk nearly 20% over the past month, and are off 53% over the past year. Its U.S. shares
are down 23% in the past month, and have fallen 54% over the past 12 months.