“A large number” of the bank’s ultra-rich clients cut or exited their holdings in China’s largest e-commerce firm after reports of the probe emerged, Citi Private Bank’s Lab for Family Offices said in a report released Tuesday. China’s stock market previously attracted significant inflows from the firm’s wealthiest customers in the second-half of the year, according to the report.
Once hailed as drivers of economic prosperity and symbols of the country’s technological prowess, Alibaba and rivals including Tencent Holdings Ltd. face increasing pressure from regulators after amassing hundreds of millions of users and gaining influence over almost every aspect of daily life in China. The $35 billion initial public offering of Alibaba’s affiliate payments firm — Ant Group Co. — was abruptly halted last year, helping send Alibaba’s U.S.