- Alibaba (NYSE:BABA) shares fell 8% in Hong Kong and around 3.5% in the U.S. after hours following reports that Chinese authorities have launched an anti-monopoly investigation against the company and will summon affiliate Ant Group over financial regulations, according to CNBC.
- The market regulator said it was looking into Alibaba's policy of “choose one of two,” which requires its business partners to avoid dealing with competitors.
- A meeting will also be held with Ant Group in the coming days, according to a statement by the People’s Bank of China.
- The meeting would “guide Ant Group to implement financial supervision, fair competition and protect the legitimate rights and interests of consumers,” the statement said.
- The moves follow China’s dramatic last minute suspension of Ant’s $37B IPO, planned in November 2020.
- Last month, Beijing issued draft rules aimed at preventing monopolistic behavior by internet firms, marking China’s first serious antitrust move against the sector.
- Tencent (OTCPK:TCEHY) and internet services giant Meituan (OTCPK:MPNGF) declined around 3%, while SoftBank Group, Alibaba’s largest shareholder, sank ~2% in Tokyo.
- Also, news are making rounds that Jack Ma offered to give parts of Ant Group to Chinese government.