The Chinese online retail giant shares dive after they have warned of a slowdown in consumer spending. The shares have slumped by more than 10% in Hong Kong trade.

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The online retail company estimated that its annual revenue would grow at the slowest pace. It is the first time happened since its stock market debut in 2014. It is assumed due to Beijing’s regulatory crackdown the online business firm is facing such a situation. Rising competition might be another reason for these weak figures. Alibaba’s US-listed shares also ended the session more than 11% lower. However, the company expects that its annual revenue growth will increase soon by between 20% to 23%.

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Due to new coronavirus outbreaks, people are more concerned and have become more cautious about spending. Power shortages and concerns about the property market also slow down Chinese consumption. The chief executive of Alibaba, Daniel Zhang said, “Increasing competition and slowing consumption in China were the main causes for the weaker growth.”

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Earlier this year, Alibaba has come under intense scrutiny from Beijing regulatory body. New rules have been imposed on China’s big technology companies. Alibaba has to pay a record $2.8bn fine. The regulatory body claimed that it had abused its market position for years. After that Alibaba explained that it would change the way it conducted its business.