Company's CEO and COO were not involved in the spike in fraud but resigned to take responsibility for the "systemic breakdown" in the company's "culture of integrity."
Yahoo has sold its direct stake in Alibaba.com for pre-tax proceeds of $150 million. The company still maintains 28 percent indirect ownership in the trading site.
The relaunched site at www.yahoo.com.cn has a new home page and search-based business model.
International Federation of Phonographic Industries says the site, controlled by Alibaba.com, lost its appeal in a piracy lawsuit it filed against the company.