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Alibaba's U.S.-traded shares fall amid reports of anti-monopoly probe by China - CNBC

Alibaba Group signage is seen during the company's 11.11 Singles' Day global shopping festival at their headquarters in Hangzhou, Zhejiang province, China, November 11, 2020.
Aly Song | Reuters

BEIJING — Shares of Alibaba fell in both Hong Kong and extended-hours U.S. trading as reports surfaced that the Chinese government is conducting an anti-monopoly probe into the tech giant.

China's State Administration for Market Regulation said through official online channels Thursday it has opened an investigation into Alibaba over monopolistic practices. The primary issue named was a practice that forces merchants to choose one of two platforms, rather than being able to work with both.

The news comes on the heels of an increasing — and largely unexpected — push by Chinese authorities to rein in their biggest tech firms through regulatory action.

An Alibaba representative did not immediately respond to a CNBC request for comment. Bloomberg first reported the news, which was announced by Chinese state news agency Xinhua.

Hong Kong-listed shares of Alibaba dropped more than 6% shortly after markets opened Thursday.

New York-traded shares of Alibaba fell more than 3% in after-hours trading on Wednesday.

Separately, Alibaba-affiliate Ant announced it received a notice Thursday from regulators for a meeting. Last month, regulators abruptly suspended the financial technology giant's massive initial public offering just days before the planned listing in Hong Kong and Shanghai.

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