Alibaba Shares Fell 6.8%, A Second Decline Since Listing.

On May 26th, according to foreign media reports, Alibaba shares suffered a sell-off in trading on the US stock market on Wednesday, and share prices fell sharply. Alibaba disclosed Wednesday that the US Securities and Exchange Commission (SEC) is investigating it.

In the 20-F annual report to SEC, Alibaba The survey indicated that the survey started from the beginning of this year, and the objectives of the survey included the data of "double eleven", the strategy and operation method of the merger of performance data, and related party transactions. This includes, in the accounting operation of Alibaba, the rookie network is regarded as "investment object of equity law".

With regard to the issue of rookie networks, a Alibaba spokesman said: "our financial data on rookie networks disclosed to investors by the 122 to 123 pages of 20-F documents (revenue, net loss and profit and loss account items) are powerful and transparent information, which answers the question of SEC question."

Alibaba launched the "double eleven" promotion in 2009. Last year, the sales promotion brought over $14 billion in sales. Earlier this year, CCTV has revealed that sellers' brushes are widespread on Taobao, Taobao's largest shopping platform. In addition, the Alibaba platform is also accused of existence. Fake problem 。

　　 Alibaba stock price On Wednesday, it fell $5.53, or 6.8%, the second largest single day decline since the company went public in September 19, 2014. Trading volume reached 49 million 400 thousand shares on Wednesday, more than four times the average of 11 million 400 thousand days in the past 30 days. Alibaba shares closed at $75.59 on Wednesday, the lowest since mid March. In the post market trading of US stock market, Alibaba shares also fell further.

Alibaba's biggest single day drop in January 29, 2015 was 8.8%. At that time, Alibaba released quarterly results.

Alibaba said it was in line with SEC's request, and the company voluntarily provided information. A SEC spokesman declined to comment.

Industry experts say the SEC survey raises the possibility that the Alibaba report's performance looks too good to be true. Anant Sundaram, a finance professor at the Tuck School of business at Dartmouth College, said: "I think this is a real time for Alibaba," said Anant Sundaram. If I buy Alibaba shares, what do I buy?

Jay Ritter, a professor of finance at University of Florida, said one of the problems was that the Alibaba or its suppliers might have brushed the bill and falsely increased sales. Jay Litt, For example, Alibaba will not enter the cancelled orders until the second quarter, which may cause the current quarterly data to be raised. Lite thinks that the actual sales level and growth rate of Alibaba may mislead investors. He said: "the question is how serious the phenomenon is, and all kinds of possibilities exist."

The standard & Poor's global market intelligence has lowered Alibaba's stock rating from "strong buy" to "buy". Analyst Scott Kessler said, "we are worried about what kind of problems we will have and what kind of recognition SEC will make." However, he said that standard & Poor's believes that Alibaba's current share price has reflected such concerns.

Alibaba's stock price has fallen by 7% so far this year, while the standard & Poor's 500 index has risen 2.3% in the same period, and Amazon's share price has risen 4.8%.