Jefferies: Alibaba faces growing regulatory threat

• 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.