Such an announcement was made immediately after Alibaba's inclusion on Friday on a list of Chinese companies facing delisting. The list was prepared by the US Securities and Exchange Commission for failure to meet audit requirements. Consequently, we could see a more significant drop in Alibaba's shares listed on the US market in Friday's trading session specifically by 11%. In Hong Kong, the stock plunged by more than 5% during Monday's trading session, but recovered by the afternoon and traded at around 2.2%. The electronic giant said that it was added to the SEC list, which means that their audits for the financial year ending March 31, 2022 could not be fully reviewed by the US Public Company Accounting Oversight Board. Alibaba plans to apply for a dual primary listing on the Hong Kong Stock Exchange. The tech giant's shares are already traded on exchanges in both the US and Hong Kong, but the current listing in Hong Kong is secondary. The primary listing process in Hong Kong is expected to be completed by the end of 2022.

Movement of Alibaba Group Holdings Ltd ADR’s price in the last five years. (Source: Investing)

Sources: Reuters, Investing, CNBC