NEW YORK (TheStreet) --Alibaba (BABA) - Get Report shares are tumbling 2.75% to $63.94 on heavy trading volume on Monday as trading restrictions for the e-commerce giant's 1.6 billion shares, equivalent to 64% of its shares, ended on Sunday, the Financial Times reports.

Since the company went public a year ago, shares have dropped nearly 30%. The company peaked in November when shares were trading at around $119.

There are several factors causing shares to decline. On top of China's weak economy sending out global shock waves, competitors like Chinese e-commerce firm JD.com (JD) - Get Report  has been grabbing some market share in the business-to-consumer market, CNBC.com noted.

Other rivals include Vipshop (VIPS) - Get Report and Amazon.com (AMZN) - Get Report .

"These companies might not have the scale to compete with Alibaba, but they specialize in specific products, services, or markets, which might limit Alibaba's product categories and offerings expansion," Morningstar Strategist R.J. Hottovy stated. 

Going forward, investors will keep an eye on what Yahoo! (YHOO) plans to do with its 15% stake. 

Based in Hangzhou, China, Alibaba operates as an online and mobile commerce company in the People's Republic of China and internationally.

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