Alibaba shares fall 3%

Shares of Alibaba have fallen more than 3% following the release of a Chinese government report, held back so as to not impact its recent, multibillion-dollar IPO, which noted that the company’s Taobao Marketplace had not only failed to provide proper oversight, facilitating a number of illegal activities, but also implicating the company’s employees in taking bribes.

 

According to Bloomberg; “The scathing report by the State Administration for Industry & Commerce accused Alibaba of allowing merchants to operate without required business licenses, to run unauthorized stores that co-opt famous brands and to sell fake wine and handbags. Alibaba employees took bribes, and the e-commerce giant didn’t fix flaws in customer feedback or internal credit-scoring systems, the report said”.

No Comment

2

Leave a Reply