Why Alibaba (BABA) Shares Are Trading Higher Premarket Today - Alibaba Gr Hldgs (NYSE:BABA)

Alibaba Group Holding Limited BABA fintech affiliate Ant Group is likely for a lower penalty as regulators brace to end a years-long industry crackdown.
Regulators now propose a penalty of 5 billion yuan ($728 million), down from the prior fine of over $1 billion, Reuters reports.
Chinese authorities, notably the People's Bank of China (PBOC), which has been driving a business overhaul at Ant after quashing its $37 billion IPO in 2020, looks to announce the fine in the coming months.
Also Read: Alibaba Chip Unit And Ant Group's Payment Service Unite To Launch Chips For Payments
The penalty will likely ease the fintech firm's path to secure a long-awaited financial holding company license, seek growth, and eventually make its market debut.
The authorities also look to reconsider their charges against Ant. China now cites financial risks and operating particular businesses without proper licenses as the triggers for the fine.
Earlier, the penalty was likely to be focused on alleged violations related to "disorderly expansion of capital."
Ant underwent a sweeping business overhaul since April 2021, which includes turning itself into a financial holding firm, subject to rules and capital requirements similar to those for banks.
Ma, in January, agreed to relinquish control of Ant as part of the revamp.
The cut in the fine following the recent return of Ant's founder Jack Ma after his overseas tenure of more than a year since the IPO fiasco reflects the softening sentiments of Beijing toward the private sector.
Price Action: BABA shares traded higher by 2.68% at $99.00 premarket on the last check Tuesday.

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Ant IPO Might Actually See Light: China Proposes Lower Penalty For Jack Ma's Fintech Affiliate

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