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.
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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.