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HANGZHOU, China — Alibaba Group Holding Ltd. said it's being investigated by the US Securities and Exchange Commission over its accounting practices and whether they violate federal laws.
The company is providing documents and cooperating with the probe, according to the Hangzhou, China-based company’s annual report. The investigation is looking at consolidation practices, related party transactions and data reported from its Singles’ Day promotion.
Singles’s Day is Alibaba’s biggest shopping day, attracting more than 90 billion yuan ($13.7 billion) of sales on its e-commerce platforms in a 24-hour period last year.
“The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred,” the company said. “This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded.”
Alibaba's shares were down 2.2 percent in early trading in New York to $79.35. They are little-changed this year through the market's close Tuesday.
By Natasha Khan; editors: Robert Fenner and Molly Schuetz.
