Alibaba Stock Rallies 8% on Friday as Ant Group Overhaul Advances

Bloomberg2023-07-08

China imposed more than $1 billion in fines on tech giants Ant Group Co. and Tencent Holdings Ltd., signalling an end to a crackdown on the sector that had wiped out billions in market value and ...

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Comments

  • Cedric77
    2023-07-08
    Cedric77
    There have been a few instances in which the Chinese government imposed a fine on a listed company and the company's stock price went up in the short term, only to dip afterwards. One example is Ant Group, which was fined 1.75 billion yuan (US$242.2 million) by the People's Bank of China in March 2023. The fine was imposed for Ant Group's failure to comply with anti-monopoly regulations. In the days following the announcement of the fine, Ant Group's stock price rose by as much as 10%. However, the stock price has since dipped and is now trading below its pre-fine level. Another example is Tencent Holdings, which was fined 500 million yuan (US$77.4 million) by the Cyberspace Administration of China in April 2023 for failing to properly censor content on its platforms. In the days following
  • Cedric77
    2023-07-08
    Cedric77
    It is difficult to say whether BABA is safe and accepted by the Chinese government since it was imposed with fines. The fines were imposed by the Chinese government for antitrust violations, and they were significant. However, the Chinese government has also taken steps to support Alibaba in other ways, such as allowing it to list its shares on the Hong Kong stock exchange. This suggests that the Chinese government is not trying to destroy Alibaba, but rather to rein it in and make sure that it complies with regulations. As for whether the Bank of China has accepted BABA's way of running ANT Group, it is too early to say. The Bank of China has not made any public statements about its views on ANT Group, and it is possible that it is still evaluating the company. However, the fact that the
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