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SEC Investigating Alibaba's Accounting Practices

This story originally appeared on Reuters
SEC Investigating Alibaba's Accounting Practices
Image credit: Reuters | Jason Lee

Alibaba Group Holding Ltd. said it was being investigated by the U.S. Securities and Exchange Commission over whether the Chinese ecommerce company's accounting practices violated any federal laws.

Alibaba's shares were down 4.1 percent at $77.80 in early trading on Wednesday.

The company has provided the SEC with information about its accounting for logistics unit Cainiao Network as well as operating data from its Singles' Day shopping festival, according to Alibaba's annual report filed on Tuesday. 

Singles' Day is the biggest shopping festival in the world, and accounts for more than the combined sales of the Black Friday and Cyber Monday shopping events in the United States.

The SEC advised the company that the investigation should not be seen as an indication that Alibaba had violated federal securities laws, Alibaba said.

Up to Tuesday's close, Alibaba's stock had fallen 12.3 percent in the last 12 months. 

(Reporting by Narottam Medhora in Bengaluru; Editing by Anil D'Silva)

This story originally appeared on Reuters