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