China’s market regulator rebukes e-commerce firms for misleading discount campaigns, triggering a sell-off in Alibaba and JD.com shares.
Alibaba (BABA) and JD.com (JD) shares fell sharply in Hong Kong trading after Beijing’s market regulator criticized top e-commerce platforms for deceptive marketing practices. Alibaba dropped as much as 5.9% in Thursday morning trade, while JD.com also declined.
The crackdown follows regulatory scrutiny on pricing transparency and consumer protection, echoing past interventions in China’s tech sector. Both companies have faced similar rebukes in prior years, but enforcement actions have intensified under recent policy shifts.
Investors reacted swiftly to the regulatory pressure, extending losses in a sector already grappling with slowing domestic consumption and macroeconomic headwinds.