Alibaba (BABA -1.5%) has seen its share price rise 8% so far this year, but shareholders appear to be factoring in the broader economy and "growth expectations are re-setting," said Karen Chan, an internet analyst at Jefferies.
"A bigger worry for investors than the slowdown is how China’s regulators will behave this year," she added. "Investors are uncertain about how policy would be playing a role in the sector going forward."
Worries about systemic risk, particularly in a year of slowing growth and problems with debt, may also force action against the larger players.
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