Alibaba shares jump after $ 2.8 billion fine against monopoly

The moves will be seen at the Alibaba Group headquarters during the 11.11 Singles’ Day Worldwide Shopping Festival in Hangzhou, Zhejiang Province, China, on November 11, 2020.

Aly Song | Reuters

GUANGZHOU, China – Alibaba shares in Hong Kong jumped more than 5% on Monday after the company was fined 18.23 billion yuan ($ 2.8 billion) by Chinese regulators as a result of a monopolistic investigation.

“Despite the record fine, we think it should lift a huge overhang on BABY and shift the focus of the market back to basics,” Morgan Stanley wrote in a note on Sunday, a day after the fine was issued. .

Chinese regulators launched a monopolistic investigation into Alibaba in December. The main focus was on a practice that forces merchants to list their products on one of two e-commerce platforms, rather than choosing both.

China’s state administration for market regulation (SAMR) said on Saturday that this practice hinders competition in China’s online retail market and ‘infringes on the businesses of traders on the platforms and the legal rights and interests of consumers’.

Alibaba CEO Daniel Zhang said he did not expect any significant impact on the company as a result of the change in this exclusive arrangement.

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