- NYSE:BABA added 1.77% on Monday as Chinese stocks had a mixed session overall.
- AliBaba reportedly fired 10 of its employees after details of its scandal were leaked.
- Chinese gaming stocks like Tencent fall after new regulations are set.
NYSE:BABA started the week off on the right foot after snapping its three-day losing streak from last week. Shares on BABA gained 1.77% on Monday, and closed the trading session at $162.29. The move higher came on a strong day for tech as both the NASDAQ and S&P 500 soared to new all-time highs once again. It was not as rosy a day for Chinese ADR stocks, as Nio (NYSE:NIO), Didi (NYSE:DIDI), and Li Auto (NASDAQ:LI) traded lower. On the positive side, JD.com (NASDAQ:JD), PinDuoDuo (NASDAQ:PDD), and XPeng (NYSE:XPEV) all were riding higher to start the week.
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A report surfaced on Monday that AliBaba has officially fired ten of its employees for leaking sensitive details about the sexual assault scandal that rocked the company earlier this month. Investigation into the alleged high ranking manager is still going, and the first arrest in the incident was made last week. The case opened up a nation wide protest of how women are treated in work environments, and was a black eye for AliBaba in the national media.
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One of AliBaba’s main domestic rivals Tencent (TCEHY) received a blow over the weekend as the Chinese government issued new regulations on online gaming for children. The new ban will limit children from playing online games for more than three hours per week. The gaming industry is of course one of Tencent’s main segments, and further regulations by the CCP, which labelled online gaming as similar to an ‘opiate addiction’, could cause the stock to fall even further.
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