Alibaba, Tencent shares rise as investors bet China's tech crackdown is over

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Alibaba Group and Tencent shares rose in Hong Kong on Monday after China's $984 million fine against the Jack Ma-founded Ant Group appeared to signal the end of a regulatory crackdown on the country's technology sector.

that values the fintech at a 75% discount to the valuation touted in an abandoned initial public offering plan, but is seen as providing liquidity and certainty to investors.

The People's Bank of China said on Friday that most of the prominent problems for platform companies' financial businesses had been rectified and regulators would now shift their focus from focusing on specific companies to overall regulation of the industry. "Their share prices have strongly rebounded today mainly driven by the expectation that regulatory pressure from mainland government will ease," said Dickie Wong, Kingston Securities executive director.Alibaba, which spun off Ant 11 years ago and has a 33% stake, said on Sunday it was considering whether to participate in the buyback that would transfer shares to an employee incentive scheme.

Ant and its subsidiaries had violated laws and regulations in areas including corporate governance, financial consumer protection, payment and settlement business, as well as anti-money laundering obligations, the PBOC said on Friday. The fine was one of the largest ever for a Chinese internet company.

 

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