Alibaba Surges as Chinese Regulators Wrap Up Three-Year Antitrust Review
Alibaba Group's shares rose in U.S. markets following the completion of a three-year regulatory review by Chinese authorities addressing monopolistic concerns.
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Highlights
- Chinese regulatory body finalizes a three-year compliance review of Alibaba.
- Alibaba was fined in 2021 and implemented reforms to resolve monopolistic practice allegations.
- Jefferies analysts view the end of the review as a fresh opportunity, maintaining a strong "buy" recommendation.
Shares of Alibaba Group (BABA) climbed in U.S. trading on Friday after China's State Administration for Market Regulation (SAMR) announced the conclusion of a comprehensive three-year "rectification" process targeting alleged monopolistic behavior by the e-commerce leader.
The regulator confirmed Alibaba adopted multiple corrective measures, such as removing policies that discouraged merchants from collaborating with competing e-commerce platforms, aligning with government directives.
In 2021, SAMR imposed a record fine of 18.23 billion yuan ($2.57 billion) on Alibaba for abusing its market dominance and established the rectification timeline. Alibaba’s CEO Daniel Zhang expressed acceptance of the penalty and commitment to compliance.
Analysts at Jefferies interpret the completion of this regulatory phase as a potential new chapter for Alibaba’s growth trajectory, reaffirming their "buy" rating.
Alibaba’s stock rose 2.3% to $82.95 during Friday’s morning session, marking a roughly 7% gain year-to-date.
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