Alibaba pops as China said to substantially reduce fine, charges on Ant Group
Apr. 18, 2023 7:19 AM ET
Alibaba Group Holding Limited (BABA)
By: Chris Ciaccia, SA News Editor
3 Comments
 Adam Yee
Alibaba (NYSE: BABA) shares popped more than 2.5% in premarket trading on Tuesday as it was reported that Chinese regulators are expected to drastically reduce the fine and charges against Ant Group, the tech giant's financial technology arm.
Ant Group, which was facing a levy of more than $1B, is now expected to be fined of $728M, according to Reuters, citing three people with knowledge of the matter.
In addition to the smaller fine, Ant Group is likely to see reduced charges, with some of the wording of the charges curbed to include financial risks and operating without proper licenses, the people added.
The fine is slated to be announced in the coming months, the news outlet added.
The relationship between Ant Group, which operates the popular AliPay app, and the Chinese government has started to thaw in recent months after its $37 billion IPO was derailed in 2020. As late as last year, the initial public offering was said to be delayed "indefinitely" amid China's crackdown on the tech industry.
In January, however, Chinese regulators said Ant Group could raise $1.5B for its consumer finance unit, widely seen as an important step forward towards an eventual initial public offering.
Once the fine is levied, Ant Group may receive its long-awaited financial holding license and move towards a public listing. |
