Alibaba and JD.com shares fell sharply following a regulatory reprimand regarding the 618 shopping festival. Alibaba's stock dropped as much as 6.5% in Hong Kong. This decline marks its largest intraday fall in nearly three months. JD.com shares decreased by almost 6%.
The Beijing branch of the State Administration for Market Regulation summoned Alibaba, JD.com, PDD Holdings, ByteDance, and Xiaohongshu. Regulators cited concerns over false advertising and a lack of transparency regarding subsidies.
Platforms allegedly promoted tens of billions of yuan in subsidies without disclosing specific contributions from companies or merchants. This action signals ongoing regulatory oversight of intense price wars within China's e-commerce industry.