Alibaba scandal may help rivals' business

HONG KONG - Alibaba.com Ltd, owner of China's largest online-commerce site, has been the go-to marketplace for Western companies seeking gaskets, garden gnomes and gelatin. Disclosures that its salespeople helped defraud buyers may send business to rivals Google Inc and Global Sources Ltd.

Since Alibaba announced the scam on Feb 21, its chief executive officer and chief operating officer have resigned, and the company has lost about $1 billion in market value. The flagship of Alibaba Group Holding Ltd, which counts Yahoo Inc as its biggest shareholder, also may struggle to sign up new clients, analysts said.

"This will hurt the company's reputation and its ability to attract global buyers," said Paul Wuh, head of Internet research at Samsung Securities Co Ltd in Hong Kong. "This could be positive for its competitors."