Alibaba's Stock Slumps After Disclosure Of SEC Probe Into Singles Day Data, Consolidation Practices

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Alibaba Group Holding Ltd. slumped 2.7% in premarket trade Wednesday, after the China-based ecommerce giant disclosed in a filing that it was being investigated by the U.S. Securities and Exchange Commission. The company said the investigation, which was initiated earlier this year, is into the reporting of data from Singles Day and its consolidation policies and practices and related party transactions. Alibaba said it was cooperating with the SEC's request that the company "voluntarily" provide it with the information. "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," Alibaba stated in the filing. "This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded." The stock has slipped 0.2% year to date through Tuesday, while the S&P 500 has gained 1.6%.

Copyright © 2016 MarketWatch, Inc.

Continue Reading Below