Why Are Alibaba Shares Trading Lower Today?

Chinese regulators ordered Alibaba Group Holding Ltd BABA owned fintech giant Ant Group to split Alipay create a separate app for its loans business, Financial Times reports.
The CreditTech unit, which includes the two units, accounted for 39% of the group’s revenues in the first half of 2020.
China seeks to end big tech’s monopoly power that came from their control of data.
China also wants Ant to turn over the user data that underpins its lending decisions to a new credit scoring joint-venture that would be partly state-owned.
China previously ordered Ant to divide the back end of its two lending businesses, Huabei, similar to a traditional credit card, and Jiebei, which made small unsecured loans, from the rest of its financial offerings and invite outside shareholders.
Additionally, China warned internet firms against blocking links to rival services, reaffirming Beijing’s order for online giants from Alibaba, Tencent Holdings Ltd TCEHY, ByteDance Ltd to destroy walls around their platforms, Bloomberg reports.
Price Action: BABA shares traded lower by 1.37% at $165.80 in the market session on the last check Monday.