The biggest electronic commerce site, of China called Alibaba. com Ltd. declined the most in more than a year in Hong Kong trading after the firm found more than two thousand three hundred vendors had set up bogus storefronts for defrauding global buyers.

The flagship of Alibaba Group Holding Ltd. declined in the tune of 9.6 percent, which is the steepest intraday fall after September 2009, to reach HK$15.08. Analysts working at Morgan Stanley and Mizuho Financial Group Inc. reduced their ratings on the stock, indicating worries about the fallout from the fraud at the Hangzhou, China-based Company.

Yesterday, Alibaba stated that David Wei, its Chief Executive Officer and Elvis Lee, its Chief Operating Officer had quit the firm after the probe found some of its salespeople and managers were responsible for allowing vendors to create fake storefront to scam international customers. Though the two executives weren’t directly involved in the fraud, they quit to take responsibility for the matter it said.

Jake Li, working at Guotai Junan Securities in Shenzhen, rated the stock “neutral” and stated that Alibaba’s reputation of their website and services are of utmost importance The degree of the problem doesn’t seem to ask for such a high-level reshuffle, but Alibaba is taking quite drastic action to build up the confidence of its users.

Alibaba’s site is used by firms like Procter & Gamble Co. and Wal-Mart Stores Inc. for buying goods from Chinese exporters, changed hands at 15.24Hong Kong dollars, fall of 8.6 percent, seen at 10:38 a. m. in Hong Kong. The company is the leading unit of billionaire Chairman Jack Ma’s Alibaba Group, which considers Yahoo! Inc. as its biggest shareholder.