China woes push Alibaba share price below IPO level

China’s slowdown and the recent sharp drop in its main stock market indexes are negatively affecting the Chinese E-commerce giant Alibaba Group. In fact its share price fell for the first time below its IPO price ($68 per share) to $ 58.14. This level is far from the $119 per share peak reached in November.

This reaction is due to concerns surrounding the regulatory framework in China, the release of results below expectations or to the uncertainty sparked by the evolution of its e-commerce platform, Taobao.

On Tuesday, Alibaba chief executive Daniel Zhang told his staff that they should “forget about the share price,” emphasising the company’s strong bank balance, which includes a high level of reserves, robust cash flow and a scalable profit-generating business model.