Alibaba Group witnessed a staggering $20 billion erosion in market value on Friday as investors reacted to the abandonment of its cloud business spin-off plans. The decision to scrap the spin-off was attributed to uncertainties arising from U.S. restrictions on chip exports to China for use in artificial intelligence applications.

Alibaba Group’s shares in Hong Kong experienced a significant setback, marking a 10% decline, the most substantial single-day drop in over a year. This downturn followed the surprising strategic reversal disclosed late on Thursday. The impact extended to the company’s U.S.-listed securities, which closed down 9%.

Investors were caught off guard by the unexpected shift in strategy, prompting speculation about undisclosed issues behind the scenes. Jon Withaar, the head of Asia special situations at Pictet Asset Management in Singapore, remarked, “The shelving is a surprise and makes us wonder if there are issues behind the scenes that we aren’t aware of.”