China’s fine of 2. 2.8 billion is less severe than some investors fear, and it’s based on just 4 percent of Alibaba’s 2019 domestic sales, far less than the maximum 10 percent allowed under Chinese law.
China has just imposed a record no-confidence fine on Alibaba Group Holdings Limited, the company thanked the government and investors breathed a sigh of relief.
Alibaba’s American deposit receipts in New York rose 9.3% on Monday, their biggest jump in nearly four years.
For Jack Ma, the founder of the e-commerce giant, that means his fortune has risen by ৩ 2.3 billion to $ 2.2 billion, according to the Bloomberg Billionaires Index.
The ৮ 2.8 billion fine is less severe than some investors feared, and is based on just 4% of the company’s 2019 domestic sales, much lower than the maximum 10% allowed under Chinese law.
Although the internet giant needs to adjust it like a business, its vice chairman says regulators will not monitor the core of its e-commerce strategy and its chief executive has announced that Alibaba is ready to move forward.
“Alibaba could not have achieved our growth without proper government control and services, and critical oversight, tolerance and support from our constituency was critical to our development,” the agency said in an open letter. “For this, we are full of gratitude and respect.”
The mother, who was the richest man in China until last year, has lost billions since regulators launched an anti-monopoly campaign, shutting down the initial public offering of her ant group Co Payment Company two days before it was scheduled to go public.
He is now the third richest person in China after Zhong Shanshan of Pony Ma of bottled water company Nongfu Spring Co. and Tencent Holdings Limited.