Alibaba stock prices tumble amid Alibaba’s crackdown

Alibaba stock price has fallen in the wake of the Chinese internet giant’s crackdown on foreign firms.

The stock was trading at $4,879 at 8:22am (02:22 GMT) on Wednesday, below its record close of $5,898.

Analysts had expected Alibaba to announce a $100 million fine to cover its costs of blocking foreign companies from buying its online shopping platform Alibaba.com and its online marketplace Taobao.

The Chinese firm has since said that it will refund the $100m to consumers.

Alibaba shares fell by more than 15% in the first hour of trading, to close at $2,039.

Alibaba also announced a $50 million compensation fund for employees who lost their jobs due to the crackdown.

Alibaba shares closed up 0.4% on Thursday.