BEIJING - Acting on information, China's State Administration for Market Regulation has started investigation on Alibaba Group for alleged monopoly conduct including implementing an "exclusive dealing agreement." 

The market watchdog said in a brief statement that it is investigating Alibaba over its alleged practice of “choosing one of two”, or forcing merchants to avoid dealing with rival platforms JD and Pinduoduo and to sell exclusively on Alibaba.

“Company business operations remain normal.”“Today, Alibaba Group has received notification from the State Administration for Market Regulation that an investigation has been initiated into the Company pursuant to the Anti-Monopoly Law. Alibaba will actively cooperate with the regulators on the investigation,” Alibaba said in a statement.

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Shares of the e-commerce giant plunged more than 8 percent in Hong Kong on Thursday to finish at HK$228.20 ($29.43).

Luo Weiteng contributed to this report