Alibaba admitted the participation of Chinese authorities in 12 of its divisions – Kommersant

Over the weekend, Chinese online retailer Alibaba notified exchange regulators of the USA and Hong Kong on the participation of the Chinese state in the share capital of 12 of its divisions. This disclosure was made following a request from the US Securities and Exchange Commission (SEC). Alibaba noted that Chinese government-linked companies own stakes in six of Alibaba’s direct sales units, which together accounted for about 6% of the company’s total revenue for fiscal 2022-2023.

In five out of six cases, state shares do not exceed 10%, in the sixth – no more than 30%, as stated in Alibaba’s notifications. In addition, the company reported that government entities own stakes in several divisions involved in the sale of sports and health products, as well as logistics operations and servicing local customers. Alibaba did not disclose the names of specific divisions in which the Chinese authorities own shares.

Previously, the Communist Party of China stated about plans to tighten control over the country’s technology industry, including in the corporate sector. Experts interviewed by Bloomberg believe that such statements, coupled with Alibaba’s disclosures, could heighten investor concerns about Chinese technology companies and draw increased attention from foreign regulators.

Read about how Beijing is intensifying anti-corruption purges in the Kommersant article. “China still has a lot to fight with”.

Evgeny Khvostik