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Alibaba Shares Drop More Than 5% on Probe Report

  • Golden Dragon Index drops 2.2%; Alibaba declines 5.8%
  • Alibaba’s cloud unit said in talks on major cyber breach
Updated on

Hong Kong shares for Alibaba Group Holding Ltd. tumbled as much as 5.8% on Friday, after a report that the company faces an inquiry in China in connection with a data theft case renewed regulatory concerns broadly.

In the US, the Nasdaq Golden Dragon China Index fell 2.2%, bringing its weekly drop to 7.7%. The move was led by Alibaba’s US-traded shares hitting their fifth consecutive day of decline. Technology peers Baidu Inc. and JD.com Inc. slid 3% and 1%, respectively, while electric vehicle stock Nio Inc. lost 0.2%.