NEW YORK, Jan 18, 2026, 10:55 (EST) — Market closed.
Alibaba Group Holding’s U.S.-listed shares ended Friday down 3.24%, closing at $165.40 as investors digested signs that Beijing aims to temper a red-hot equity rally alongside fresh doubts over high-end AI chips in China. Trading volume hit roughly 18.3 million shares, per stock data. (StockAnalysis)
U.S. markets remain closed Monday in observance of Martin Luther King, Jr. Day, delaying the next trading session in New York until Jan. 20. This pause widens the disconnect between recent headlines and price moves for Alibaba’s American depositary shares, which represent the company’s stock in U.S. markets. (New York Stock Exchange)
Why it matters now: China’s securities regulator announced Friday it will raise the minimum margin requirement for new stock borrowings to 100% from 80%, effective Jan. 19. This move tightens rules on how much cash investors must put up to borrow shares, potentially curbing leveraged trading. The regulator also promised “timely counter-cyclical adjustments” as turnover increases and mainland stocks rally. (Reuters)
Alibaba’s shares in Hong Kong closed Friday up 0.97% at HK$166.20, swinging between HK$165.00 and HK$168.70 during the session, according to stock data. The Hong Kong market reopens first next week, while Alibaba’s U.S. listing remains closed until Tuesday. (StockAnalysis)
Trouble is mounting in the supply chain. The Financial Times reported that suppliers of parts for Nvidia’s H200 have halted production after Chinese customs blocked shipments of the newly approved AI processors from entering China. Reuters, unable to verify the claim immediately, noted that Nvidia didn’t respond outside normal business hours. Sources Reuters spoke to said Chinese officials called in domestic tech firms, warning them against buying the chips unless absolutely necessary, though it’s unclear if this amounts to a formal ban. (Reuters)
Alibaba’s chip situation is critical because its cloud and AI goals hinge on securing top-tier processors for training large models. According to a Dec. 10 Reuters report, sources revealed Alibaba approached Nvidia about purchasing H200 chips after the U.S. indicated the product might be exportable to China, depending on Beijing’s response. “The training of leading Chinese AI models still relies on Nvidia cards,” Zhang Yuchun, general manager at Chinese cloud provider SuperCloud, told Reuters. (Reuters)
The coming sessions might rely less on Alibaba-specific updates and more on how China’s margin crackdown impacts overall risk appetite, plus any official word on H200 shipments. These broader factors can move Chinese internet stocks quickly, even if the companies themselves haven’t shifted.
There’s risk on both sides. Should Beijing’s crackdown curb speculation and the H200 limits hold firm, investors might scale back their forecasts for AI infrastructure spending in China. But if customs eases up or the restrictions prove short-lived, that pressure could vanish fast, sending Alibaba’s shares bouncing back just as sharply.
The near-term triggers are lined up. Investors are eyeing China’s hike in margin requirements set for Jan. 19, along with any official word from Nvidia or Chinese regulators on H200 shipments. Then comes the U.S. market reopening on Jan. 20, which could shake things further.
Alibaba is set to release its next earnings report on Feb. 19, per Investing.com, with investors likely zeroing in on cloud expansion, AI spending, and any news about capital returns. (Investing)
