Alibaba Group's share price jumped by more than 9% Monday after it reassured investors the company is done with regulatory scrutiny in China after a record $2.78 billion antitrust fine.
China's State Administration for Market Regulation slapped the company with the hefty fine Sunday after it concluded its months-long investigation into reports of Alibaba's alleged abuse of its dominant market position.
On Monday, Alibaba Chairman Daniel Zhang told investors during a conference call that its operations will remain largely unaffected. Zhang put a positive spin on the fine and said it represents the end of the antitrust investigations.
"We had good guidance on some of the specific issues under the anti-monopoly law and I would say that we are pleased that we are able to put this matter behind us," Alibaba vice-chair, Joe Tsai, said during the conference call.
Alibaba said it will be introducing measures to address concerns over its alleged anti-competitive behavior and misuse of consumer data. The company said it will lower entry barriers and costs for merchants on its shopping platform.
Zhang assured investors that Alibaba is in constant communications with regulators and it plans to fully comply with all their recommendations.
Following the announcement, the company's shares jumped to as high as HK$237.60 ($30.50) in Hong Kong. The stock pulled back slightly and was trading at around HK$234.80 by mid-day.
Alibaba has been the subject of a nationwide crackdown on major tech companies alleged to be abusing their market power. The company was targeted after its co-founder Jack Ma publicly criticized Chinese regulators for adhering to archaic rules.
Ma expressed his opinion after his company, through its Ant Group digital payments arm, was criticized over its aggressive push into digital services such as wealth management, online lending, and insurance.
Regulators began their investigation in December, focusing mainly on reports of Alibaba's practice of barring merchants from selling their products on rival e-commerce websites.
Apart from Alibaba, companies such JD.com and Tencent have also been the subject of criticism over their "unfair" dominance in their respective markets.