HK regulator says Alibaba broke code

Hong Kong's securities regulator says Chinese e-commerce giant Alibaba Group Holding Ltd breached takeover rules in the purchase of a healthcare firm in 2014. It says that is because it also bought a company owned by the brother of the healthcare firm's vice-chairman on "favorable terms".

Alibaba agreed to buy a stake in CITIC 21CN, now known as Alibaba Health Information Technology Ltd, for $170 million two years ago.

During the acquisition process, Alibaba also agreed to buy Hebei Huiyan Medical Technology Co from Chen Wenxin, who was also a shareholder of CITIC 21CN and is the younger brother of the company's vice chairman, Chen Xiaoying.