Benzinga | Oct 11, 2021 03:35AM EDT

Alibaba Skyrockets 8% In Hong Kong As Meituan Regulatory Fine Fuels Market-Wide Optimism

Shares of Meituan (OTC:MPNGF), Alibaba Group Holding Limited (NYSE:BABA), JD.Com Inc. (NASDAQ:JD), Baidu Inc (NASDAQ:BIDU), Tencent Holdings (NASDAQ:TCEHY), and BYD Co (OTC:BYDDY) are all trading higher in Hong Kong on Monday.

What Happened: Shares of food delivery giant Meituan are trading 8.75% higher at HKD 278.40 after China fined the company $530 million for antitrust violations on Friday, the second such regulatory fine so far this year.

Chinese e-commerce giant Alibaba's shares traded almost 8.81% higher at HKD 169.20 in Hong Kong, while e-commerce company JD.Com's shares are up 4.93% to HKD 310.80 and Baidu shares are up 5.8% at HKD 161.80.

BYD shares were up 5.82% at HKD 257.60 on Monday.

See Also: Alibaba, JD And Nio Rivals Xpeng, Li Auto Strike Gains Even As Hang Seng Drifts Lower

Why Is It Moving? Shares of the Meituan and other tech companies are higher as investors feel the worst could now be over for the big Chinese internet companies following the latest regulatory fine.

Earlier this year, China slapped Alibaba with a record $2.8 billion monopoly probe. The Chinese government at the time said that Alibaba used anti-competitive practices in its online retail market.

Alibaba Group and other leading tech companies in China have been scrutinized by regulators over their growing influence in the country.

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