Alibaba Health plunges on govt decision

Alibaba Health Information Technology Ltd plunged after the government said it will halt the implementation of a drug-coding system that is developed and operated by the company.

Alibaba Health shares fell 14 percent to HK$4.14 (52 cents) in Hong Kong trading. The China Food & Drug Administration suspended the electronic coding system that identifies counterfeit medicines as it made draft amendments to existing rules, allowing the use of other methods of tracking medicines back to their origin, the administration said in a statement on Saturday.

Alibaba Health, a subsidiary of billionaire Jack Ma's Alibaba Group Holding Ltd, is focused on the pharmaceutical and healthcare industries in China.