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12/28/2020, 8:04 AM (Source: TeleTrader)
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Alibaba falls over 7% in HK after PBoC order

Alibaba Group Holding Limited's stock in Hong Kong dropped over 7% on Monday after the People's Bank of China (PBoC) regulators issued orders to the company's affiliate Ant Group to improve regulatory compliance and rectify all business and financial violations.

PBoC and other regulators met Ant officials over the weekend, where the company was criticized for issues with corporate governance, alleged lack of regulatory compliance, "illegal regulatory arbitrage behavior, the use of market advantages" that "exclude business operators in the same industry," and for hurting "the legitimate rights and interests of consumers," according to Pan Gongsheng, the deputy governor of China's central bank. "The Ant Group must fully recognize the seriousness and necessity of rectification, meet the standard supervision requirements, and formulate a rectification plan and implementation schedule as soon as possible," he pointed out in a statement released yesterday.

Alibaba's shares were 7.45% down at 7:48 am CET, selling for HK$211.6 ($27.29) as the company also announced that it will increase share repurchase program from $6 billion to $10 billion.

Breaking the News / MS