Oct 18, 2021 (Baystreet.ca via COMTEX) -- Last week, Alibaba (NYS:BABA) rebounded sharply from a $138.43 yearly low. The stock rallied back above the 20-day moving average and the 200-day average. Investors are betting the Chinese Communist Party (or CCP) will levy no further fines, restrictions, or regulations against the e-commerce giant.
No investors may guess what the CCP will do next to punish Alibaba. The company has an upcoming Single's Day on 11.11. It will also post quarterly earnings. After losing half its value, the stock does not trade at a premium. Before the CCP's crackdown on the firm, BABA stock rose on the Ant Financial initial public offering expectations. Now that the IPO is off the table, investors may buy BABA stock to bet on Ant going public.
Futu Holdings, which operates a trading application primarily in Hong Kong, lost one-quarter of its value. The new Chinese data law threatens Futu's business. A new personal data privacy law will take effect on Nov. 1. This regulatory risk could hurt Futu's business.
In an article in the official People's Daily, Futu and UP Fintech (NAS:TIGR) collect personal information. Violating China's new rules would send the stock even lower. After Nov. 1, investors will have better clarity on Futu's prospects.
Is there a problem with this press release? Contact the source provider Comtex at email@example.com. You can also contact MarketWatch Customer Service via our Customer Center.