Alibaba Faces U.S. SEC Investigation for Accounting Practices

Alibaba Faces U.S. SEC Investigation for Accounting Practices
May 26, 2016 By eChinacities.com

Alibaba reported yesterday that it is being investigated by the U.S. Securities and Exchange Commission (SEC) for its accounting practices. The SEC is looking into data reported from Alibaba’s Singles’ Day sales, how the company consolidates results from affiliated third-party partners, including logistics company Cainiao Network.

“The S.E.C. 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. This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded,” said Alibaba in its annual report.

As of May 25, Alibaba shares fell 6.82% down to $75.59.

The company said that the SEC inquiry was routine, and that Alibaba has not violated any securities laws. Alibaba’s Singles’ Day sales have become the largest online shopping event in the world, outranking U.S.’ Cyber Monday and Amazon’s Prime Day. In 2015, Alibaba’s Singles’ Day sales reached a record 92.1 billion RMB.

Source: thepaper.cn

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Keywords: U.S. Securities and Exchange Commission Alibaba. Alibaba SEC

1 Comments

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Guest593844

Ma Yun...at the end of the day he ends up in an American jail cell with the Enron folks.

May 28, 2016 14:07 Report Abuse