Alibaba Group Holding Ltd (NYSE:BABA) is trading lower Tuesday following reports suggesting China asked state firms to check their investments in Jack Ma's Ant Group.
According to a Bloomberg report, citing people familiar with the matter, several regulators have asked institutions to review their exposure to Ant Group. State-owned banks and non-bank firms are among those that have been asked to make checks.
The firms were reportedly asked to report any findings to the authorities as soon as possible, although it's not clear if the firms were given deadlines or if any action will be taken.
Earlier this month, China fined Ant-backed MYBank $3.52 million for violating credit score rules and transacting with unidentified customers.
Alibaba operates online marketplaces in China, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
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BABA Price Action: Alibaba has traded as low as $108.70 and as high as $269.39 over a 52-week period.
The stock was down 4.3% at $113.87 at time of publication.
Photo: courtesy of Alibaba.
