Shares of Chinese tech major Alibaba (NYSE:BABA) are inching upward today after Reuters reported that Ant Group is in the final lap of its revamp (driven by regulatory authorities) with a fine of nearly $1.1 billion coming up.
Ant’s initial public offer nearly three years ago was short-lived and the fine from China’s central bank could come over the coming days. Importantly, after this fine in the rearview, Ant could move toward securing a financial holding company license and possibly aim for an IPO again.
The company, founded by China’s tech mogul Jack Ma, has been on a restructuring drive over the past two years and the development comes as the country looks to boost its economy and improve business confidence. Alibaba too was slapped with a nearly 18 billion yuan fine in 2021.
Meanwhile, Alibaba has also launched an AI image generator in China. Called Tongyi Wanxiang, the solution will initially be available to enterprises.
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Overall, the Street has a $141.87 consensus price target on BABA alongside a Strong Buy consensus rating. Shares of the company have dropped nearly 9% year-to-date.
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