Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning. Today is Monday, July 10th, and I'm your host, Julie Morgan.

Alibaba and Tencent are in focus as Ant Group is slapped with a fine.

New proposed M&A rules are likely to delay deals by months and China's consumer inflation was unexpectedly flat in June.

Here's what's making headlines today.

The Hong Kong listed Cheers of Alibaba and Tencent rose on Monday amid optimism that China's crackdown on the technology sector

is nearing the end after the Central Bank imposed fines on Ant Group and Tencent last week.

Shares of Alibaba ended 3.2% higher in Hong Kong,

while Tencent closed up 0.7%.

U.S. listed shares of Valley Baba are down 1% pre-market today after ending 8% higher on Friday.

The People's Bank of China slapped a $985 million fine on Ant Group in which Alibaba owns a 33% stake. The fine

means that Ant Group can explore an IPO again close to three years after its

plans were blocked for not meeting listing requirements.

After the penalty was revealed, Ant Group announced a surprise stock buyback that

values the FinTech Giant at more than 78 billion U.S. dollars, well below the $315 billion valuation sought in 2020 for what

would have been the world's largest IPO.

Alibaba is considering participating in the buyback.

PBOC also find 10 cents and its payment unit 10 pay

$410 million, which the company said will not have any material impact on its operations.

New U.S. guidelines propose for regulators to review mergers and acquisitions have the potential

to add months to a deal review and companies and

private equity firms may incur significant new costs. Last month the Federal

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