Chinese tech stocks rally after regulatory compliance pledge


A person holding a cellphone walks previous an indication of Chinese firm ByteDance’s app TikTok, identified regionally 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 be taught from the crackdown on Alibaba and submit a plan for compliance with anti-monopoly practices inside a month.

Chinese regulators have targeted their consideration in current months on Jack Ma’s e-commerce large and its fintech affiliate Ant Group, whose large 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, slightly than permitting them to work with each.

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

The bulletins are the primary in a collection of such pledges set to come back over the subsequent three days, the regulator mentioned.

Other U.S. or Hong Kong-traded names talked about in Tuesday’s record 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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