The news comes on the heels of an increasing — and largely unexpected — push by Chinese authorities to rein in their biggest tech firms through regulatory action. Alibaba confirmed the market regulator’s investigation in a public statement, and said “business operations remain normal.”
Bloomberg first reported the news, which was announced by Chinese state news agency Xinhua. Hong Kong-listed shares of Alibaba dropped more than 8% Thursday as of late-morning trading. New York-traded shares of Alibaba fell more than 3% in after-hours trading on Wednesday.