Alibaba shares surged more than 5% in Hong Kong as penalty on Ant fuels hopes of ending regulatory crackdown
COMPANY NEWS MARKET STOCKS
Alibaba shares surged more than 5% in Hong Kong as penalty on Ant fuels hopes of ending regulatory crackdown
COMPANY NEWS MARKET STOCKS

Alibaba shares surged more than 5% in Hong Kong as penalty on Ant fuels hopes of ending regulatory crackdown

 

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Shares of Alibaba Group opened 5.5% higher in Hong Kong on Monday, before paring gains to 3.6%, driven by news that China imposed 7.1 billion yuan fine on its fintech affiliate Ant Group for violating laws and regulations, fuelling hopes that a years-long regulatory crackdown on the company has ended.

In addition, Ant Group announced a share buyback that values the company at $78.54 billion, well below the $315 billion touted in an abandoned IPO in 2020, but providing liquidity to investors.

Online retail giant Alibaba, which spun off Ant 11 years ago and has a 33% stake, said on Sunday it was considering whether to participate in the buyback.