Alibaba Group and Tencent shares rose in Hong Kong on Monday after China’s $984 million fine against the Jack Ma-founded Ant Group indicated the end of a regulatory crackdown on the country’s technology sector.
On Friday, the Alibaba affiliate announced a share buyback that values the fintech at a 75% discount to the valuation touted in an abandoned initial public offering (IPO).
The move will provide liquidity and certainty to investors.
In late 2020, China began a wide-ranging clampdownon industries ranging from technology to education, as regulators.
The scrutiny left decades-old firms and startups alike operating in a new, uncertain environment and wiped billions off share prices, ensnaring companies from online retail giant Alibaba to gaming company Tencent and food delivery group Meituan (3690.HK).
