US Regulators Investigating Alibaba’s Financial Model
U.S. regulators are investigating Alibaba Group Holding Ltd's accounting practices to determine whether they violated federal laws, the Chinese e-commerce giant said, sending its shares tumbling nearly 7 percent on Wednesday.
Alibaba said the Securities and Exchange Commission launched the investigation earlier this year. Questions about its growth rate and its relations with affiliated companies have dogged the firm for years.
It was not immediately clear what prompted the SEC investigation. Alibaba said that it was cooperating with the authorities and that the SEC advised it the investigation should not be seen as an indication the company had violated federal securities laws.
The SEC focused on the accounting for logistics firm Cainiao Network, which is around 47 percent-owned ...