Long regarded as a model of success for Chinese companies, Alibaba was the first to suffer retribution from the authorities.

A year ago, the Communist authorities had cut the wings of the private group, by stopping the gigantic IPO of its payment subsidiary Ant Group in Hong Kong, 48 hours before the event.

Presented as the biggest fundraiser of all time, the operation should have brought him 27.4 billion euros.

The following month, Alibaba came under investigation for obstructing competition.

The group founded by the whimsical Jack Ma has since been fined 2.3 billion euros in the spring.

And the authorities then extended their regulatory tightening to other lucrative sectors (private tutoring, meal delivery, entertainment, video games), losing billions of yuan in capital.

On Thursday, Alibaba reported a very sharp slowdown in earnings in the second quarter of its lagged fiscal year.

Paytm's dive

It stood at 5.37 billion yuan (741.3 million euros) for the period from July to September, against 28.7 billion yuan a year earlier, a decline of 81%.

Its turnover, on the other hand, is up 29% over one year, to 155 billion yuan (21.4 billion euros).

The company says it expects sales to increase by around 20 to 23% this year, while warning of "risks and uncertainties" that could penalize its activities.

These quarterly results are published the day Paytm, a pioneer of online payment in India and of which Ant and Alibaba are shareholders, plunged into the Bombay Stock Exchange on its first day of trading.

The stock lost more than 25% in a matter of minutes on Thursday, as investors worried about Paytm's ability to become profitable even though it had the biggest fundraiser in history in India.

The Indian start-up's misstep caused Alibaba to lose more than 5% on the Hong Kong Stock Exchange on Thursday.

Low profile

For the past year, Jack Ma has been keeping a low profile after public criticism of the Chinese regulator, which seems to have earned his group to be in Beijing's sights.

The Hong Kong daily South China Morning Post (SCMP), owned by Alibaba, said last month that Jack Ma was in Europe for a series of business meetings.

This first trip abroad suggests that Jack Ma, who left the management of Alibaba in 2019, is not being prosecuted.

In the course of investigations, China sometimes prevents certain people from leaving the territory.

Alibaba is also more discreet than usual, especially for its "Singles Day", which gives rise to huge discounts online.

For years, these balances were accompanied by an intense media campaign from Alibaba, with a giant screen showing live, the evolution of the amount of transactions carried out on its platforms.

But this year on November 11, no drumming or trumpeting or triumphant comments from Alibaba officials.

Launched by Alibaba a decade ago, the "Singles Day" falls on November 11 (11/11) every year, due to the succession of "1" in the date which symbolizes celibacy.

JD.com, Alibaba's main competitor in China, for its part announced Thursday 2.8 billion yuan in quarterly losses (386.6 million euros).

The firm, which did not provide an explanation, had made a profit of 7.6 billion yuan a year earlier.

© 2021 AFP