According to Zhitong Finance APP, Alibaba-W (09988) dropped more than 4% in the afternoon. As of press time, it fell 4.21% to HK$89.85, with turnover of HK$8.495 billion.

On the news front, New York short-selling firm Culper Research previously said that Singapore-headquartered Megaspeed used Southeast Asian intermediaries to obtain Nvidia's advanced chips in order to circumvent U.S. trade restrictions, and claimed that Alibaba was suspected of having provided billions of dollars in funding to Megaspeed for the purchase of these chips.

UBS released a research report stating that market sentiment toward Alibaba is negative in the short term, but the bank believes the related impact may be overestimated. The reasons include that Alibaba Cloud has the largest deployed computing capacity in China, its self-developed Pingtouge chips can serve as a supplement, and if supply becomes tighter, there is room for prices to rise.