Alibaba shares are expected to open in bear market territory after the launch of the antitrust probe

Shares of Alibaba Group Holding Ltd. BABA,
+ 0.14%
sank 7.2% in presale on Thursday after Chinese regulators launched an antitrust investigation against the e-commerce giant, the Associated Press reported. That sale put Alibaba shares on the right track to open at the lowest level recorded during the working hours of the July 7 regular session. It also means stocks will open in bear market territory, which many on Wall Street say was marked by a drop of 20% or more from a significant high. Since closing at a record $ 317.14 on Oct. 27, the stock closed as much as 19.6% at $ 255.11 on Dec. 15, before splitting some losses to $ 256.18 on Wednesday. A close to or below $ 253.71 would make the bear market “official”. For comparison, iShares MSCI China ETF MCHI,
+ 0.58%
rose 0.9% from October 27 to Wednesday, while the S&P 500 SPX,
+ 0.07%
gained 8.8%.