Federal regulators are investigating the accounting practices of Alibaba Group Holding Ltd., the e-commerce giant whose blockbuster U.S. stock-market debut helped win a wide following for Chinese tech firms. The Wall Street Journal reports the company disclosed Tuesday that the Securities and Exchange Commission asked Alibaba to provide details of its accounting for a delivery affiliate, its operating data for the largest online shopping day of the year, and “related party transactions in general.” Alibaba shares fell nearly 7% to $75.59 at 4 p.m. in trading Wednesday in New York. Alibaba said it is cooperating with the SEC on its inquiry, and stressed the request for information isn’t indication of any violation of federal securities law.
China Economic Review