China’s regulators announced a US$2.8 billion fine on Alibaba over the weekend, which we thought was more of a lesson rather than a penalty.
The market apparently thinks quite positively about the decision, or the fact that a decision was made. Here is Alibaba’s share performance on the first trading day (in Hong Kong Stock Exchange) after the fine:
With a 6.51% surge (when most other leading tech stocks, including Tencent and Meituan, were trending down) gave Alibaba an additional market cap of almost US$40 billion.
