March 28, 2023

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As per the latest reports, the share prices of Alibaba have risen in the United States markets. The analysts have reported that the share prices of Alibaba experienced a 6% rise in the price of shares in the premarket trading.

Just recently, Alibaba had found itself in the headlines when it was reportedly targeted by the Chinese regulators. The reports revealed that Alibaba has been met with a $2.8 billion fine by the Chinese regulators. The fine was imposed on Alibaba after a thorough inquiry and investigation were run on Alibaba’s anti-monopoly tactics.

Even the Hong Kong Stock Exchange (HKEX) observed a rise in the price of shares for Alibaba. Alibaba is one of the companies that is primarily listed in the US Stock Exchange markets and the HKEX is its secondary listing.

According to the stats from Hong Kong Stock Exchange (HKEX), its prices have risen by 6.5% at the closing of Monday, April 12, 2021 trading.

One of the major investment firms, Morgan Stanley also made a statement about the recent matter. Morgan Stanley shared in a statement that even though Alibaba has faced a huge fine from the Chinese regulators, it would still help the company a lot.

The firm stated that with this, a huge overhang has been lifted off Alibaba (BABA), and now it will be able to focus more on the services it provides to the users.

The fine on Alibaba was reportedly imposed on Saturday, April 10, 2021, and the statement was released by Morgan Stanely a day later.

The Chinese regulatory authorities had been monitoring Alibaba and its activities in the e-commerce sector. They had been observing how the company was involved in anti-monopoly activities and was not letting any startup gain recognition.

Therefore, in December of 2020, the Chinese regulators decided to launch an anti-monopoly probe over the Chinese company “Alibaba”. The regulators strongly opposed the tactic where Alibaba gave no choice to the retailers while selling their products.

If retailers wanted to sell their products through Alibaba, then they would only be able to do it through them and no other e-commerce platform. This left the retailers with no choice but to choose Alibaba over others because of its market presence and high following.

While imposing the fine, the Market Regulatory Administration (SAMR) commented on Saturday, April 10, 2021, that by using this strategy, Alibaba literally kills any competition in the market.

Doing so is not only harming the new startups in the e-commerce sector but is also posing a huge threat for the local retailers. If this continues, then the retailers from China would start going for international e-commerce giants, and the country’s business will be at a loss.

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