U.S.-listed shares of Alibaba Group Holding Ltd. experienced a surge ahead of Friday’s market open following reports that the ongoing investigation into Ant Group is coming to an end, resulting in a penalty of at least 8 billion yuan ($1.1 billion).
After making substantial gains in Hong Kong, Alibaba’s ADR (American Depository Receipt) with the ticker symbol BABA, rose by 3% upon the release of a Reuters report citing anonymous sources. The report stated that the People’s Bank of China is likely to announce a fine for the fintech arm of Alibaba, possibly on Friday.
This development will enable Ant Group to proceed with obtaining a license as a financial holding company, revitalizing its initial public offering (IPO) plans. Earlier this year, Jack Ma, the co-founder of Alibaba, relinquished control of the Chinese fintech group in an effort to appease Chinese regulators who had compelled Ant Group to abandon its public listing plans for 2020.
While technology shares have been trending upwards this year, Alibaba’s stock has underperformed, experiencing a decline of over 4%. Investor concerns have been focused on China’s economic reopening, which has shown signs of slowing.
For comments or further information about this matter, both Alibaba and the People’s Bank of China can be reached out to.
