December 24, 2020 10:00
On Thursday, Chinese regulators announced that an anti-monopoly investigation has been launched against Alibaba Group, the first of its kind for a Chinese tech company.
In particular, the market regulator will focus on Alibaba’s policy of “choose one of two”, whereby merchants are required to sign cooperation pacts which prohibit them from selling their products on rival platforms.
The news comes a month after regulators forced the suspension of Ant Group’s IPO, Alibaba’s financial technology spinoff, which was co-founded by Alibaba founder Jack Ma. The IPO was set to be the world’s largest.
This new probe is part of a crackdown on anti-competitive behaviour on the Chinese internet, amid regulator concerns of the amount of influence tech giants such as Alibaba and Tencent have amassed.
Both moves against Jack Ma’s business interests come after a speech Ma gave in Shanghai where he blasted China’s regulatory system, accusing it of stifling innovation.
On Thursday morning, Alibaba shares fell almost 9% on the Hong Kong Stock Exchange ahead of the New York Stock Exchange’s opening, where Alibaba shares are also listed.
Depicted: Admiral Markets MetaTrader 5 – Alibaba.com Ltd Daily Chart. Date Range: 3 March 2016 – 23 December 2020. Date Captured: 24 December 2020. Past performance is not necessarily an indication of future performance.
Trade CFDs With Admiral Markets
With an Admiral Markets Trade.MT5 account, you can trade Contracts For Difference (CFDs) on Alibaba and over 3,000 other stocks! CFDs allow traders to attempt to profit from both rising and falling markets as well as benefiting from the use of leverage! Click the banner below to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3.With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4.The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter “Author”) based on personal estimations.
5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6.Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.