After Alibaba said it would not proceed with a full spinoff of its cloud group because of U.S. chip export restrictions, the Chinese e-commerce giant’s shares fell nearly 10% in early Hong Kong trading.

Alibaba’s U.S.-listed shares closed over 9% lower on Thursday, after dropping over 10% since the start of the year.

The Hong Kong-listed shares of Alibaba have fallen close to 15% year-to-date, underperforming the Hang Seng index’s 11.2% decline.

Alibaba announced Thursday that it would no longer proceed with the spinoff of its Cloud Intelligence Group – Alibaba’s cloud computing division that competes with Amazon Web Services and Microsoft Azure. Originally, Alibaba planned to list the division on the stock exchange.

As a result of U.S. chip export restrictions, Alibaba said Chinese firms have had difficulty obtaining critical chip supplies from U.S. companies. A ban on the sale of Nvidia’s H800 and A800 chips focused on artificial intelligence went into effect in October.

Alibaba said Thursday that the restrictions have “created uncertainties for Cloud Intelligence Group’s prospects.”

According to the company, a full spin-off of Cloud Intelligence Group may not achieve the desired effect of enhancing shareholder value, and it would be better served by developing a sustainable growth model for the unit.