Alibaba shares fall 3.5pc to below IPO following China market slump

Amid the biggest one day drop in the Shanghai composite index since 2007, US-traded shares in Alibaba fell 3.5 per cent on Monday to US$65.80- dropping below its IPO price of US$68.

Alibaba went public in September 2014 to the largest IPO in history, raising US$25 billion- with share prices rising to a high of US$119.15 in November last year.

However, prices fell as low as US$59 a share on Monday, amid concerns over China's economy, before recovering to US$65.86.

The Shanghai composite index dropped 8.5 per cent on Monday amid recent months of volatility and concerns voiced by investors over a weakening Chinese economy and flagging demand.

What started as a sell off in mainland Chinese and Hong Kong indices, where US$692 billion evaporated, quickly spread to stock markets around the world.

The S&P 500 and Nasdaq fell 3.9 per cent and 3.8 per cent respectively, while in London, around £74 billion of the value of the FTSE 100 index vaporised.

The US stock market saw a massive sell-off as stocks dived the most since 2011. Most US-listed Chinese firms were also victim to sell-offs, with some of China’s biggest firms suffering falls.