HONG KONG, July 25, 2026, 02:29 HKT — Alibaba’s HKG:9988 stock decline erased approximately HK$94 billion in market value as enthusiasm for an artificial intelligence sector rally subsided.
- Alibaba finished Friday down 4.26% at HK$110 and declined 2.31% over the week.
- An initial calculation shows equity value fell by HK$94.0 billion on Friday, roughly 19.1 times the EU fine imposed on AliExpress.
- Hong Kong markets are shut for the weekend, with the Federal Reserve and China’s PMI data topping next week’s agenda.
Alibaba Group Holding HKG:9988 saw its market value fall by approximately HK$94 billion on Friday. The initial calculation is based on its share total disclosed as of July 10.
The magnitude serves as an indicator for investors. The reported loss is roughly 19.1 times the fine imposed on AliExpress in the European Union. Based on Friday’s ECB rate, the penalty stands at HK$4.91 billion.
The comparison serves as a reference for scale rather than indicating causation. Reuters announced the fine at 11:09 p.m. HKT on Monday. Alibaba shares rose 0.17% in Tuesday trading.
Hong Kong’s cash market remains shut for the weekend. Standard trading will restart on Monday, July 27.
Markets broadly declined on Friday as a rebound in oil prices heightened worries about inflation. Alibaba dropped by 2.79 percentage points more than the Hang Seng Tech Index.
The week started on a unique note. Alibaba gained 3.73% on Monday following the unveiling of Qwen3.8 Max. By Friday, the rally linked to the AI model had faded.
Rivals showed more resilience.
| Security | Friday close | Friday | Week |
|---|---|---|---|
| Alibaba Group Holding HKG:9988 | HK$110.00 | -4.26% | -2.31% |
| JD.com HKG:9618 | HK$118.10 | -1.25% | +1.55% |
| Meituan HKG:3690 | HK$86.70 | -0.69% | +3.65% |
| Hang Seng Tech Index | 4,629.51 | -1.47% | +0.14% |
| Hang Seng Index | 24,963.23 | -0.98% | +1.63% |
The weekly change reflects closing prices from July 17 to July 24.
Alibaba underperformed the broader technology index by 2.45 percentage points over the week, indicating investors applied a larger risk discount specific to the company.
AliExpress has been issued a €550 million fine by EU regulators for insufficient measures against illegal and counterfeit products. The company described the fine as “disproportionate” and stated it is considering its next steps. Reuters
By Friday’s market close, the fine represented about 0.23% of the projected equity value. Ongoing compliance expenses could prove more significant than the one-time financial penalty.
Alicia Yap, an analyst at Citigroup NYSE:C, stated that AI purchasers could turn “model-agnostic,” opting for systems based on their specific use and associated expenses. This increases the focus on cloud cost efficiency and distribution methods. Barron’s
Alibaba reported a 38% rise in cloud revenue for the March quarter, reaching 41.63 billion yuan. Meanwhile, adjusted EBITA for China ecommerce dropped 40% due to higher investment. The disparity highlights the ongoing discussion over valuation.
Markets face two major events in the coming week. The Federal Reserve is set to meet on July 28-29. Meanwhile, China’s July PMI data is expected in a preliminary release on Friday at 9:30 a.m.
Risks are balanced in both directions. New regulatory actions or disappointing Chinese data may widen the discount further. However, robust cloud demand or reduced inflation concerns could narrow it.
At present, the loss compared to peers outweighs the significance of the fine. Monday will reveal if the lower valuation continues.
Related articles: HKG:9988
