Alibaba’s stock valuation, one of China’s largest technology companies reduce After declaring that the donation is in line with the “common prosperity” agenda that Beijing is promoting. For investors, this decision has sparked some concerns about enacting more Chinese regulations against some of China’s largest technology giants.
After Alibaba announced that it would make a huge donation of US$15.5 billion, its shares in the Hong Kong Hang Seng Technology Index fell 3.6% and closed at US$171.12 that day.Castor Pang, Head of Research Department of Jinghua Yamaichi International Hong Kong Co., Ltd. told Bloomberg Alibaba’s donation is a “big event”, and the company’s future profit growth may decline to lower-value asset classes. He added that this sentiment is affecting the entire Chinese technology industry.
Alibaba released statement Together with the donation announcement made by its CEO Zhang Yong on Thursday. Zhang said in it that his company is a beneficiary of China’s “strong social and economic progress” and is eager to do his part to give back.
“We are eager to make our own contributions to support high-quality development and achieve common prosperity,” Zhang said.
The definition of patriotism has changed under the leadership of President Xi Jinping
Photo: AFP/Anthony Wallace
Since the Chinese Communist Party came to power, this “common prosperity” agenda has been strengthened Announce At the meeting of the Central Finance and Economics Commission on August 17, it will “regulate excessively high incomes and encourage high-income groups and enterprises to give back to society more.” The agency is chaired by President Xi Jinping, who stated at the meeting that the government will seek “Adjust excess income“On the surface, it is to reduce income inequality in China.
Since Xi Jinping made his promise, Beijing has enacted new rules on data and network security, foreign ownership, and foreign stock market listings, and has experienced positive regulatory drivers.It’s almost torn Half trillion The value of Chinese technology stock index investors.It even prompted some investors to consider depositing funds elsewhere external the world’s second-largest economy.
Alibaba itself is the subject of an antitrust investigation in China. It stated that its billions of dollars in donations will be distributed within a few years, and it is not alone among the tech giants that have announced a common prosperity agenda.lottery company Tencent Zhang Yiming, the founder of TikTok, said he would donate US$7.7 billion to promote the policy Byte beating, Is donating 77.3 million US dollars of his own money to create an education fund.Other company founders Donate Including Pinduoduo, Meituan and Xiaomi.
