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NEW YORK (TheStreet) -- Shares of Alibaba (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report  are down 2.75% to $78.77 in pre-market trading on Wednesday after disclosing an SEC investigation into its accounting practices. 

The Chinese e-commerce giant said in its annual filing with the SEC that it has given the agency documents and information regarding the reporting of Singles Day data as well as its consolidation policies and practices and related party transactions, the New York Times reports.

Singles Day is a November e-commerce holiday in China, for which Alibaba boasts the amount of goods sold on its sites. 

The company said it is cooperating with the investigation.

"The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred," Alibaba stated in the filing, according to MarketWatch. "This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded."

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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.

Alibaba's strengths such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

You can view the full analysis from the report here: BABA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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