BABA stock: Alibaba shares rise as China closes investigation into merger with Ant Group

Chinese authorities on Friday ended a years-long investigation into the financial-tech firm Ant Group, a subsidiary of the e-commerce leader. Ali Baba (Baba) The news sent BABA shares soaring.




X



The government fined Ant $982 million for violating consumer protection and corporate governance laws. The Wall Street Journal reported. Meanwhile, the People’s Bank of China announced the fine in a statement posted on its website. The bank has been behind Ant’s restructuring since blocking the company’s $34 billion initial public offering in October 2020.

The fine completes a regulatory overhaul by Ant, which operates popular digital payment platform Alipay. Reuters said. In addition to Alipay, Ant’s businesses include payments, consumer lending and insurance products.

Ant said it has made changes to its operations and management as a result of the regulatory investigation. The fintech firm hopes to update its plans for an IPO soon. Alibaba owns about a third of Ant, the Journal said.

Baba’s share in the news is rising

In the stock market today, Baba’s stock rose 8% to close at 90.55. A government investigation into Ant weighed heavily on Alibaba stock.

BABA stock peaked at 319.32 in October 2020, when Chinese regulators halted Ant’s IPO and began a broader crackdown on the country’s internet sector.

Alibaba ranks 14th out of 59 stocks in IBD’s retail-internet industry group. IBD Stock Checkout. But BABA stock has an average IBD composite rating of 53 out of 99.

The e-commerce company has been facing a slump in sales lately. Its revenue has declined on a year-on-year basis in the last four quarters.

See also  Bright orbs of light in the Northern California sky

Follow Patrick Seitz on Twitter @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

You may also like:

Adobe, IPT Stock of the Day, Cashes in on Generative AI

Is Meta’s Threads App a ‘Twitter Killer’? Social media users are discussing the new service

Aging Seniors: A Golden Opportunity for Tech Companies

Look for stocks in the list of leaders near the point of purchase

Find winning stocks with MarketSmith pattern recognition and custom screens

Leave a Reply

Your email address will not be published. Required fields are marked *