Following the news that China's State Administration for Market Regulation is investigating Alibaba (BABA) for suspected anti monopoly practices, UBS analyst Jerry Liu said he thinks the confirmation of such a probe is likely to "cause investors to price in a more negative outcome."

If Alibaba is forced to be less aggressive with merchants, it could help Pinduoduo (PDD) and JD.com (JD), said Liu, who also noted that he views Meituan Dianping (MPNGF) and Trip.com Group (TCOM) among the public companies that could be more at risk for anti monopoly investigations from China. UBS has a Buy rating on Alibaba with a $340 price target.