Alibaba’s Hong Hong shares observed a 6.5% rise
Alibaba shares have recorded a 6% increase in the US, according to CNBC.com.
The rise occurred during premarket trading following a $2.8 billion fine by Chinese authorities due to an anti-monopoly probe.
Despite the fine, there should be a major lift on BABA which should change the market’s spotlight to fundamentals.
The anti-monopoly investigation into Alibaba was initiated in December. The probe was centered on a process where merchants were compelled to choose between one of the two e-commerce platforms to list their products as opposed to opting for both.
The practice curbs competition not forgetting the infringement of the interests and rights of the customers.
However, this exclusivity arrangement may not have an impact on Alibaba.
In a bid to reduce the costs and entry barriers for merchants and businesses, Alibaba will propose new policies, including expansion to smaller cities as well as rural areas.
The regulatory scrutiny comes after Jack Ma made comments that seemed critical to financial regulators in China. Alibaba and its peers will be subjected to audits from authorities on acquisitions, mergers, and strategic investments.
The fine is 4% of Alibaba’s revenue in 2019. In addition to that, the company must issue self-compliance and examination records to the SAMR for 3 years.
We’ve reported that Alibaba Cloud reported its first-ever quarterly profit.