Alibaba Group Holding’s U.S.-listed shares plunged 13.3% to $34.18 on Dec. 24, after news broke that the e-commerce giant will be investigated by anti-trust regulators.
The drop marks the largest ever daily percentage decline since the company started being traded publicly in 2014. It also represents a 30% stumble from its October peak.
Alibaba said in a statement on Dec. 24 the company has received a notification from the State Administration for Market Regulation (SAMR) that an anti-monopoly probe was underway and that they will “actively cooperate with the regulators on the investigation.”
Although details have not yet been disclosed about the anti-monopoly watchdog’s investigation, Alibaba mentioned that all company business operations remain normal.
Ant Group, the company’s financial spin-off, was summoned for talks with top bank officials about fair market competition, as well as customer rights and interest protection.
The sprawling expansion of Jack Ma’s tech business empire has been stymied since November when Ant Group’s IPOs were halted.
Jack Ma has not made any public appearances since he delivered the speech at the second Bund Finance Summit in Shanghai, where he stressed the importance of a healthy financial system as well as financial regulatory reforms in China, days before the scuttled $37 Ant IPO.
Previously, Alibaba Investment had been fined 500,000 yuan by the SAMR due to anti-trust violations. And Ant Group’s Huabei, a digital interest-free lending platform popular among the Chinese Gen-Z, has cut the credit limit for some young users.