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Alibaba Group Holdings Ltd. Decline Despite Audit Deal

9/5/2022 3:24 PM

The shares of Alibaba Group Holdings Ltd., the largest e-commerce company, continue to correct and are currently trading at 92.00.

According to representatives of the Securities and Exchange Commission (SEC), last week the US and Chinese authorities concluded an agreement regulating the conduct of verification activities of audit companies located in China and Hong Kong with listings on American trading platforms. The inspection is scheduled for the middle of the month, and market giants such as Alibaba Group Holdings Ltd. and JD.com will be the first to check for compliance with the standards. 

Despite the conclusion of the deal itself, many experts doubt that the work will be successfully completed by the end of this year. According to US laws, all categories of businesses are subject to audit, which, in turn, is at odds with the provisions of Chinese law, so access to some documents is likely to be denied.

The financial report for Q2 reflected revenue of 205.56B dollars, exceeding the consensus estimate of 203.47B dollars. Earnings per share amounted to 11.73 dollars, which is higher than the 10.7 expected by analysts and 7.95 a quarter earlier.


The company's stock prices continue to decline. Technical indicators are in a state of uncertainty, but still tend to sell: the range of EMA fluctuations on the alligator indicator has begun to expand in the direction of decline, and the histogram of the AO oscillator, having dropped in the sales zone, forms descending bars.

Support levels: 87.66, 73.37. | Resistance levels: 98.44, 111.63.



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