Business

Alibaba accounting practices investigated by the SEC

Alibaba logo Image copyright Reuters

Chinese e-commerce giant Alibaba is being investigated by US regulators over its accounting practices.

The company confirmed the Securities and Exchange Commission (SEC) had requested further information into several of its accounting methods, including its records for Singles Day.

Singles Day is the world's largest shopping day, beating Black Friday.

Alibaba said the SEC told it the probe was not an indication by the agency that the firm had broken the law.

"Earlier this year, the SEC informed us that it was initiating an investigation into whether there have been any violations of the federal securities laws," said a spokesperson for Alibaba.

"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."

The investigation includes Alibaba's accounting for its logistics unit, Cainiao Network, and the reporting of operating data from Singles Day.

Investors consider the Cainiao Network to be a separate business. It was valued at $7.7bn (£5.2bn) during a round of fundraising earlier this year.

Alibaba's shares were listed in the US in September 2014. Its share price fell 4% on Wednesday.

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