Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

China regulator fines Alibaba, Tencent for disclosure violations

Published 07/10/2022, 12:51 AM
Updated 07/10/2022, 12:55 AM
© Reuters. FILE PHOTO: A man walks past a logo of Alibaba Group at its office building in Beijing, China August 9, 2021. REUTERS/Tingshu Wang/File Photo

SHANGHAI (Reuters) - China has imposed fines on technology giants Alibaba (NYSE:BABA) and Tencent as well as a range of other firms for failing to comply with anti-monopoly rules on the disclosure of transactions, the country's market regulator said on Sunday.

The State Admnistration for Market Regulation (SAMR) released a list of 28 deals that violated the rules. Five involved units of Alibaba, including a 2021 purchase of equity in its subsidiary, the Youku Tudou streaming platform.

Tencent was involved in 12 of the transactions on SAMR's list.

The firms could not immediately be reached for comment.

China's tech sector has been one of the main targets of a crackdown on monopolistic practices that started in late 2020.

Under the anti-monopoly law, the maximum potential fine in each case stands at 500,000 yuan ($74,688).

($1 = 6.6945 yuan)

Latest comments

A drop in the bucket fine..a slap on the wrist
Just when we all thought the CCP was going to go a little easier on these companies and they might be investment worthy.
Exactly. But, I see this as a good sign actually, for the US ***** we all thought China was going to lead future innovation and increase its share in the global investment market; it however turned out that they prefer to ********innovation and their economy over power management. I think it s all good for Western; as long as we do not have to much invested in this country. But short term: a new *******Monday to come for the Chinese tech sector.
Will the fine imposed affect those company stock value?
The fine is $70,000. Literally peanuts. It's just a warning from CCP to the tech giants who the real 'boss' is. The crackdown however has basically ended for now unless you think companies that make tens of billions a year in profit cannot stomach $70,000.
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.