Fraud accusations held for Alibaba IPO made public in regulator’s report
A white paper from the State Administration for Industry and Commerce published Wednesday alleged that Alibaba Group‘s (BABA.NYSE) Taobao Marketplace sold counterfeit goods and allowed stores to be run without business licenses, among other accusations, South China Morning Post reported.
The firm’s shares fell heavily in New York, closing the day down 4.36% at US$98.45. Perhaps more unsettling was the paper’s mention that the report was based on memos from a meeting between company executives and regulators held in July, after which authorities held off on publishing to “avoid hindering” Alibaba’s initial public offering in the United States.
Source: china economic review – Fraud accusations held for Alibaba IPO made public in regulator’s report
