Alibaba reveals it is being investigated by the SEC over its accounting practices
Chinese ecommerce giant Alibaba revealed in its recently filed annual report that it is being investigated by the US Securities and Exchange Commission (SEC) into whether its accountancy practices had violated of federal securities laws.
The SEC has requested further details from Alibaba on its accounting methods for Cainiao Network, its logistics unit, and how it reports its operating data for Singles Day.
Alibaba's statement noted that the SEC had told it that such requests 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 company noted that it was cooperating with the SEC, having provided it with the documentation that it requested. The matter is still ongoing and Alibaba remarked that it cannot predict when it will come to an end.
The report notes that the company was informed of the investigation earlier this year.
On Singles Day in 2015, which took place on 11 November and is one of the biggest shopping events in the world, the company was reported to have made £9.4bn worth of sales in 24 hours.
At time of writing, shares in the company, which is listed in New York, were trading down four per cent at $77.86. Back when the company went public in 2014, it was the largest IPO in the world.