Alibaba loses £2.4bn as Covid rules hit shoppers

ALIBABA has reported a surprise loss after quarterly revenue barely grew, as China’s zero-covid rules continue to stifle consumer activity.

China’s e-commerce leader reported a net loss of 20.6bn yuan (£2.4bn) despite projections for a profit of almost the same amount, after it marked down the value of investments across a portfolio that spans Didi Global to Indonesia’s Goto. Its shares fell in Hong Kong and in early trading in New York.

Alibaba is focusing on shoring up its bottom line as Beijing’s Covid policies and antitrust measures imposed during last year’s tech sector crackdown sap growth.

This month, the company failed to disclose full sales results for its signature Singles’ Day shopping festival for the first time in 14 years, suggesting a disappointing turnout for its most important annual event.

And Chinese retail sales contracted 0.5pc in October – the first decline since May and worse than expectations for slight growth.