Shares of Alibaba ended April 12 trading in Hong Kong with an increase of 6.51%, although the group was previously fined $ 2.8 billion for violating antitrust regulations.
|The China Market Control Authority (SAMR) on April 10 concluded that Alibaba is obstructing competition in the Chinese online retail market. Documentary photo: AFP|
“Although the amount of fines reached a record level, but this will help Alibaba stock have a significant correction and shift the market focus to fundamentals,” predicted multinational investment bank Morgan Stanley. April 11 after the Alibaba penalty was announced.
Chinese officials opened an antitrust investigation at Alibaba in December 2020, with a focus on determining whether Alibaba would force retailers to commit to only selling products on its e-commerce platform. instead of other platforms.
The China Market Control Authority (SAMR) on April 10 concluded that Alibaba has acts of obstructing competition in the Chinese online retail market, at the same time “restricting the legitimate right to do business of sellers and infringes upon consumers’ legitimate rights and interests “.
Daniel Zhang, CEO of Alibaba, said Alibaba will adopt new measures to reduce barriers to joining Alibaba’s sales platforms and costs for businesses and merchants. Alibaba representative added that the group will continue to expand its scope of operations to small cities and rural areas in China.
According to CNBC TV channel, many Chinese technology companies have had favorable steps and quickly become technology giants. However, Chinese officials are increasingly concerned about the power and influence of these companies.
Alibaba started to fall under the radar of an investigation after founder Jack Ma criticized the Chinese financial management system in October 2020.
Not long after that, the Chinese authorities suspended the initial public offering (IPO) of Ant Group – a fintech company founded by Jack Ma. This deal was previously considered to have the largest scale in global IPO history.
Joe Tsai, Alibaba’s Executive Vice President, confirmed that the group and its partners are committed to working with authorities in the investigation of mergers, acquisitions and strategic investments.
In addition to a fine of 18.23 billion yuan ($ 2.8 billion) – equal to 4% of Alibaba’s total revenue in 2019, the Chinese authorities said it would have to submit a review report. and comply with China Market Authority (SAMR) regulation for 3 years.