Alibaba Group Holding Ltd BABA is trading higher Monday morning after China fined food delivery giant Meituan $534 million for antitrust violations, which increased investor optimism that China's regulation on their large tech companies is easing.
China technology stocks listed in Hong Kong rallied following the announcement as the $534 million fine was not as large as expected.
Jefferies analysts said the antitrust fine has removed an "overhang" over Meituan.
“We believe the SAMR decision addresses market concerns and Meituan has been communicating with authorities and upgrading its business operations,” the Jefferies analysts said in a note Sunday.
Alibaba is the world's largest online and mobile commerce company. The company operates China's most-visited online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
BABA Price Action: Alibaba has traded as high as $319.32 and as low as $138.43 over a 52-week period.
The stock was up 5.47% at $170.46 at time of publication.
Photo: hinglish Notes from Flickr.
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