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Alibaba Group Holding Ltd. led a second day of frenetic selling among China’s largest tech firms, driven by fears that antitrust scrutiny will spread beyond Jack Ma’s internet empire and engulf the country’s most powerful corporations. Alibaba and its three largest rivals -- Tencent Holdings Ltd., food delivery giant Meituan and JD.com Inc. -- have shed nearly $200 billion in Hong Kong over the two sessions since Thursday when regulators revealed an investigation into alleged monopolistic practices at Ma’s signature company. That marked the formal start of the Communist Party’s crackdown on not just Alibaba but also, potentially, the wider and increasingly influential tech sphere. “It is very hard to predict the outcome of the Chinese government’s ongoing investigation into Alibaba and other large consumer internet platforms,” Baird analyst Colin Sebastian wrote in a note. He cut his price target on Alibaba’s U.S.-listed shares to $285 from $325, citing “uncertainty around...
Less than two months after the dramatic cancellation of its blockbuster IPO, Ant executives are left in charge of a company whose own narrative is now unclear.
The central bank summoned Ant executives over the weekend and told them to 'rectify' the company’s lending, insurance and wealth management services, the People’s Bank of China said.
The stock fell 13% in its biggest one-day drop on record. The decline took Alibaba to its lowest level since July, and the stock is now down 30% from an October peak.
The campaign against Alibaba and its peers got into high gear in November, after Jack Ma famously attacked Chinese regulators in a public address for lagging the times.
Jack Ma & team won’t get away with being digital cowboys given that too much power over China's financial levers intrudes on govt territory.
The Shanghai Stock Exchange cited significant change in regulatory environment for halting Ant IPO. But China watchers have an alternative theory for why Xi’s govt acted the way it did.
Timing of move to suspend Ant Group IPO, touted to be world's biggest stock market debut, showed that for Xi, political stability take precedence over ceding control of economy.
The move comes after China’s regulators warned that Jack Ma’s firm faces increased scrutiny and will be subject to the same restrictions on capital and leverage as banks.
Ant Group stopped taking orders from big investors a day earlier than planned due to great demand. But a smash-hit IPO doesn’t always translate into a long-term winner for investors.