By Yifan Wang

Shares of Alibaba Group Holding Ltd. are sharply lower in early Hong Kong trade, extending the e-commerce giant's steep losses overnight in the U.S., after a sudden halt of its financial arm's blockbuster initial public offering.

The stock has dived as much as 9.3% in less than an hour of trading. Its American Depositary Receipts ended 8.1% lower on the New York Stock Exchange.

The share plunge came as the Shanghai Stock Exchange suspended the IPO of Ant Group Co., which has been poised to break global records for total funds raised. Ant said its concurrent Hong Kong listing would also be suspended.

The move poses "a potential risk of tightening control on internet finance sector," KGI Securities says, as it also warns of share-price pressures on Alibaba's peers such as Tencent Holdings Ltd., which also operates a major fintech business in China.

Alibaba shares were last down 7.9% at 276.20 Hong Kong dollars (US$35.63).

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

11-03-20 2201ET