BEIJING (dpa-AFX) - Alibaba Group Holding Limited (BABA) disclosed in a regulatory filing that it was being investigated by the U.S. Securities and Exchange Commission over whether the company's accounting practices violated any federal laws.
Alibaba said that the SEC had requested information relating to consolidation policies and practices, including its accounting for Cainiao Network as an equity method investee, and policies and practices applicable to related party transactions in general, and reporting of operating data from 'Singles Day', a popular online shopping holiday in China.
'We are voluntarily disclosing this SEC request for information and cooperating with the SEC and, through our legal counsel, have been providing the SEC with requested documents and 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. This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded,' Alibaba said.
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