The share price of Alibaba Group (9988.HK) rose 5.5% at the open on Monday morning as investors hope the end of a regulatory crackdown with the tech giant is near.
The Chinese regulators slapped Alibaba’s affiliate Ant Group with a $984-million fine for violating laws and regulations. This was the largest-ever fine for an internet company in China.
The violation was in areas including corporate governance, financial consumer protection, payment and settlement business, as well as anti-money laundering obligations, according to the statement from the People’s Bank of China.
Ant Group had been pressured by this fintech crackdown for years, which derailed its plan to go public a few years ago. Now the market is expecting to see an end to this crackdown after the penalty.
The share price of Alibaba jumped 5.57% to the session’s high of HKD89.00 per share in the morning session. This was after an 8% surge on Friday.