Head of Alibaba’s streaming platform Youku arrested for 'taking improper payments'

Chinese retail giant says it is cooperating fully with the investigation

The arrest comes as Alibaba is dealing with the departure of founder Jack Ma (REUTERS)

The president of Alibaba’s online streaming platform, Youku, has been arrested in China over allegations that he accepted improper payments.

Yang Weidong was arrested by police on 3 December, Alibaba said in an SEC filing. The group said it is cooperating fully with the investigation.

Mr Yang has been replaced in his role at Youku by Fan Luyuan.

In its statement to the SEC, Alibaba said: “Alibaba Group is committed to the highest standards of business conduct in our relationships with each of our stakeholders, including our customers, business partners and shareholders.

“We require all employees to conduct our business in accordance with all applicable laws and regulations and in accordance with the Alibaba group code of business conduct. We do not tolerate any form of unethical or unlawful conduct.”

The shake-up at Youku comes as Alibaba deals with the departure of founder Jack Ma, who retired as executive chairman earlier this year.

At the time, Mr Ma said: “There’s a lot of things I can learn from Bill Gates. I can never be as rich, but one thing I can do better is to retire earlier.

“I think some day, and soon, I’ll go back to teaching. This is something I think I can do much better than being CEO of Alibaba.”