Why Alibaba Stock Fell Hard on Tuesday
Shares of Alibaba (NYSE: BABA) fell on Tuesday, down 5.7% as of 2:48 p.m. ET. There wasn't any material news on the company today, so the decline likely had to do with a risk-off mentality, reversing big gains from yesterday.
Monday had seen Alibaba and other Chinese stocks rise sharply after regulators in China proposed changing a rule that prohibits non-Chinese agencies from reviewing company audit documents. That signaled China could be on its way to cooperating with the Holding Foreign Companies Accountable Act, which requires any foreign company listed on U.S. exchanges to have their books audited by U.S. agencies within three years as a condition of staying listed.
So, was Monday's rise a false start?
Source Fool.com
