Alibaba, owned by Jack Ma, is arguably the biggest e-commerce company in the world.
Jack Ma-led Alibaba Group is being investigated under the anti-monopoly law, a measure seen as an effort by ruling Communist Party to control fast-growing tech industries.
“China s State Administration for Market Regulation (SAMR) has started investigation on Alibaba Group for alleged monopoly conduct including implementing an ‘exclusive dealing agreement ,” according to Xinhua.
The announcement shook several investors who dumped shares of Alibaba s subsidiaries and affiliates, as well as other Internet firms that are at risk of being targeted by Chinese antitrust regulators. Alibaba shares fell nearly 9 per cent in Hong Kong.