China's top e-commerce firm Alibaba.com fell below its IPO price for the first time on Tuesday before the company announced later in the day that its 2007 earnings more than quadrupled.

Alibaba released its first financial report after the company listed yesterday afternoon after market closed. Data show that Alibaba's 2007 operating income reached 2.16 billion yuan, and net profit reached 967 million yuan, separately up 59 percent and 340 percent over the same period of year 2006.

The company's shares closed down 21 percent on Tuesday at HK$12.20, below its initial public offering price of HK$13.50 last November.

At the same day, all Chinese domestic internet stocks bucked the trend to decline when compared to the Hang Seng Index rising 316 points in the favorable situation.

The Hang Seng Index has fallen more than 21 percent in the past five months, the market pressure on the market would has a great influence upon investors' confidence. said an analyst from Goldman Sachs.

Alibaba's investors may maintained a relatively high expectations on company's performance, and therefore the price-earnings ratio of Alibaba has remained at relatively high level. He added.

Alibaba's Chief Executive Officer Wei Zhe said in the press conference yesterday that the management of company has no commitment to stock performance, but only commitment to produce good performance.

China HANG SENG INDEX Investment