Chinese tech stocks rally after anti-monopoly pledge as regulators sharpen claws

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A person holding a telephone walks previous an indication of Chinese firm ByteDance’s app TikTok, recognized domestically as Douyin, on the International Artificial Products Expo in Hangzhou, Zhejiang province, China October 18, 2019.

Reuters

Regulators fined Alibaba a record $2.8 billion over the weekend for stifling competitors in on-line retail, then met with affiliate Ant on Monday and ordered it to restructure as a financial holding company.

Then on Tuesday, the State Administration for Market Regulation warned 34 Chinese “internet platforms” in a meeting to study from the crackdown on Alibaba and submit a plan for compliance with anti-monopoly practices inside a month.

Chinese regulators have centered their consideration in latest months on Jack Ma’s e-commerce big and its fintech affiliate Ant Group, whose big IPO was abruptly suspended in November. Authorities had begun investigating Alibaba in December, primarily for a observe of forcing merchants to choose one of two platforms, moderately than permitting them to work with each.

The particulars of the 12 company pledges launched Wednesday diversified by line of enterprise, and customarily mentioned efforts to assist honest competitors and safety of client information. The firms listed included Baidu, JD.com, Meituan, antivirus software program firm Qihoo 360, Twitter-like social media platform Sina Weibo, TikTok mum or dad ByteDance, group shopping for e-commerce website Pinduoduo, electronics retailer Suning and e-commerce firm Vipshop.

The bulletins are the primary in a sequence of such pledges set to return over the following three days, the regulator stated.

Other U.S. or Hong Kong-traded names talked about in Tuesday’s checklist of 34 web platforms that weren’t included in Wednesday’s preliminary spherical included iQiyi, Bilibili, Kuaishou, Mogu and 58.com.

— CNBC’s Arjun Kharpal contributed to this report.



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