Chinese market regulator The State Administration for Market Regulation (SAMR) said that it has imposed fines on Alibaba Group Holding Ltd. (BABA), Tencent Holdings Ltd. (TCEHY) and Bilibili Inc. (BILI) on the grounds that these companies failed to report several deals, as reported by Global Times.
As per China’s anti-monopoly law, SAMR has charged Alibaba’s subsidiary, Alibaba (China) Network Technology Co, with maximum possible fine of 500,000 yuan ($78,500) for not reporting its acquisition of Chinese supermarket company Xingli.
Similarly, Tencent was slapped with nine such fines for reasons such as failure to report acquisition of an online wine retailing company based in South China’s Guangxi Zhuang Autonomous Region and a Beijing-based delivery company.
Bilibili also witnessed a fine for keeping information related to its stake in a mobile picture editing software company, Versa Inc., from the regulator.
The move comes amid China’s efforts to control illegal activities, and it is likely that the regulator will report more such cases.
Wall Street’s Take
Benchmark Co. analyst Fawne Jiang maintained a Buy rating on Alibaba with a price target of $235 (94% upside potential).
Overall, the rest of the Street is bullish on the stock and has a Strong Buy consensus rating based on 4 Buys and 1 Hold. The BABA stock prediction of $203.20 implies upside potential of about 67.7%.
News Sentiment for Alibaba is Neutral based on 69 articles over the past seven days. Half of the articles have Bullish sentiment, compared to the sector average of 64%, and the remaining half have Bearish sentiment, compared to the sector average of 36%.
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