Alibaba HK shares open 5.5pc higher following fine
Hong Kong shares of Alibaba Group opened 5.5 percent higher on Monday after China fined its affiliate, Ant Group, US$984 million for violating laws and regulations. On Saturday, Ant Group announced a share buyback that values the company at US$78.54 billion, well below the US$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 percent stake – said on Sunday it was considering whether to participate in the buyback. Alibaba's share price rise outpaced a two-percent gain in Hong Kong's Hang Seng Index in early trading on Monday. Alibaba's US-listed shares rose eight percent on Friday after the penalty, one of the largest-ever fines for an internet company in China, was delivered. Ant and its subsidiaries had violated laws and regulations in areas including corporate governance, financial consumer protection, payment and settlement business, as well as anti-money laundering obligations, the People's Bank of China said. The finalisation of Ant's penalty is seen as paving the way for the firm to secure a financial holding company licence, lift its growth rate and eventually revive its plans for a stock market listing. (Reuters)