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Alibaba Group Executive Chairman Jack Ma gives a speech on “Transforming Dreams into Successful Business” to inspire young people to develop their creativity and entrepreneurship by using modern technology in Hong Kong The Alibaba Group's dust-up with one of its Chinese regulators may have settled down, but the Securities and Exchange Commission is still interested in more information about the dispute.
Alibaba disclosed on Friday that it had received a request from the SEC for more information about the clash with China's State Administration for Industry and Commerce.
That argument was a rare example of the Chinese government seemingly clamping down on one of its country's most prized enterprises - and then backing down publicly.
The SAIC had released what was initially billed as an official report criticising Alibaba for failing to curb the sale of fake items on its marketplaces. The issue, as the document put it, posed the company's "biggest credibility crisis since it was founded."
But Alibaba fought back publicly, accusing an official at the SAIC of using inappropriate procedures in the investigation. Within days, the Chinese regulator softened its criticism of the company and demoting the paper to an unofficial document without legal weight.
The SEC has jurisdiction because Alibaba is listed on the New York Stock Exchange, having raised $25 billion in its initial public offering last year.
In a statement, the company said that it was cooperating with the American regulator's informal inquiry. But Alibaba also emphasised that it had no obligation to disclose the request from the commission, since it is not a formal investigation.
"The SEC letter states it should in no way be construed as Alibaba Group having done anything wrong or there having been any violation of securities law," a spokesman for Alibaba said. "We are committed to maintaining an open, transparent and cooperative relationship with all regulatory agencies and look forward to a constructive dialogue."
©2015 The New York Times News Service
