Why Alibaba Shares Are Losing Steam?

Alibaba Group Holding Ltd BABA shares lost steam amid concerns of possible investor selloff after swapping their U.S. holdings for Hong Kong-listed ones, Bloomberg reports.
The stock lost 3.3% after data indicated a sharp rise in the Alibaba American Depositary Receipts volume conversion into Hong Kong shares last week.
Alibaba holdings under registration within Hong Kong’s Central Clearing and Settlement System increased by ~724 million shares as per December 30 data.
Related Content: Why Are Alibaba And Other Chinese Stocks Trading Lower Premarket?
The move possibly insinuates that some players could reduce their stakes soon, UOB Kay Hian Hong Kong Ltd director Steven Leung said.
In September, Alibaba holders converted ADRs into ~670 million Hong Kong shares in a day. The stock dropped ~13% over the following ten trading days.
Alibaba is battling the double whammy of a domestic regulatory crackdown and U.S. crackdown on Chinese companies.
Price Action: BABA shares traded lower by 0.24% at $118.50 in the premarket session on the last check Tuesday.

Momentum92.75

Growth73.02

Quality58.18

Value80.64

Short

Medium

Long