(Bloomberg) — Alibaba Group Holding Ltd. shares dropped as much as 7.1% in U.S. trading on Monday after Citigroup Inc. analysts saw its additional American depositary share registration in the U.S. as a sign that SoftBank Group Corp. may sell part of its stake.
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Analysts at JPMorgan Chase & Co also said in a note to clients that the further one billion ADS registration indicates some of the insiders, either management or early investor SoftBank, might dispose of Alibaba shares in the near future.
A potential stake sale by an insider, coupled with weak online consumption, will continue to weaken sentiment toward Alibaba’s shares, battered last year along with other Chinese technology peers by Beijing’s regulatory crackdowns. The stock is down 3.4% this year and more than 63% below its October 2020 highs.
SoftBank owns 5.39 billion ordinary Alibaba shares,…
