MOSCOW (Pakistan Point News / Sputnik - 24th December, 2020) Chinese e-commerce giant Alibaba Group has said that it is ready to actively cooperate with China's State Administration for Market Regulation (SAMR) in an anti-monopoly investigation initiated against the company.
Earlier in the day, the SAMR initiated an anti-monopoly investigation against the Alibaba company. Following the SAMR's decision, Alibaba's shares in the Hong Kong Stock Exchange dropped by over eight percent.
"Alibaba Group Holding Limited ... announced that today it received a notice of investigation ... from the State Administration for Market Regulation of the People's Republic of China ... The Notice states that the SAMR has commenced an investigation pursuant to the Anti-Monopoly Law of the People's Republic of China. We will actively cooperate with the SAMR's investigation. The Company's business operations remain normal," Alibaba said in a press release.
Media reported on Monday, citing sources, that the cofounder of Alibaba Group, Jack Ma, offered to hand over parts of his financial-technology giant, Ant Group, to the Chinese government in an attempt to save the company's initial public offering (IPO), which was suspended by the Shanghai Stock Exchange on November 3.
According to the Wall Street Journal, Ma's offer did not help to salvage the IPO since Beijing was angered by his criticism of the government's excessive regulations in the national financial industry, which he viewed as a major obstacle for the growth of new financial services and innovations. Chinese President Xi Jinping reportedly personally ordered Chinese regulators to study possible risks posed by Ant Group and suspend the IPO.
Alibaba Group owns 33 percent of Ant Group, which is headquartered in the eastern Chinese city of Hangzhou. The company has a leading position in China in mobile payments, and it also offers credit, insurance and asset management services through mobile applications. The group also owns several subsidiaries and online platforms: Alibaba Pictures, Alibaba.com, AliExpress.com, Taobao.com and Tmall.com.
