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.

 

 

Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at hello@mworks.asia.