The State Administration for Market Regulation (SAMR) and other Chinese regulators announced broad new rules for the e-commerce sector on January 7. These regulations become effective in February.
The rules explicitly ban major platforms, citing Alibaba, from coercing online merchants into promotions. Beijing frames the action as an effort to curb intense competition and disruptive market practices in the online retail space.
The announcement triggered an immediate negative market reaction. Alibaba shares fell by as much as 4.2% in Hong Kong trading.
The stock led losses among peers, including JD.com and Meituan. This regulatory development adds pressure to the sector, which has faced heightened government scrutiny since 2025.