Investors looking to profit from price declines in the recently listed Alibaba Group Holdings (BABA.NYSE) have short sold 8.9 million shares, equal to 2.4% of Alibaba’s listed stock, Bloomberg reported. Following a record-breaking initial offering, which saw the largest first-day increase for a stock offering of at least $10bn, Alibaba’s stock price has now fallen three of the past four days, dropping 1.8% yesterday to US$88.92. The interest rate for borrowing shares of Alibaba, or indicative fee, was 8% yesterday, according to financial information provider Markit, compared to an average rate of less than 0.5% for members of the Standard & Poor’s 500 index.
Categories