17.5 C
Auckland
Thursday, May 26, 2022
-- Free Advertisement --spot_img
HomeTechChina tech regulation spells end of Alibaba dominance

China tech regulation spells end of Alibaba dominance

Most Popular

Tech giant Alibaba’s stock continued to tumble on Tuesday, falling 18% this month and wiping out all of October’s gains on concerns over possible renewed regulation of online platforms in China.

The company’s shares were down 3% at HK$132.90 as of 11:06am in Hong Kong (03:06 GMT), hovering near record lows. Brokerages say that they see rival JD.com as a buy with much better profitability.

China regulates Alibaba news

China’s State Administration for Market Regulation said over the weekend that it had fined Alibaba, Tencent, and Baidu, among other tech companies, for breaching antitrust law by failing to declare deals as far back as 2012.

The competition regulator imposed a fine of 500,000 Chinese yuan ($78,279) for each of the 43 cases listed in its investigation.

Moreover, on Monday Deutsche Bank cut its target price for Alibaba’s Hong Kong stock by almost 4%, citing “near-term challenges.” The bank has raised its target for JD.com by 16%, noting “resilient growth amid macro uncertainties.”

Ramiz Chelat, a senior portfolio manager at Vontobel Asset Management, told Bloomberg that Beijing’s tech crackdown means Alibaba will have to shift about 5% of its e-commerce revenue to its competitors, including JD.com and Pinduoduo.

JD.com, which was also down on Tuesday, in line with the wider market, is up about 46% from its August low. The company earlier reported more than a 25% jump in third-quarter revenue, saying that its “growing consumer mindshare” helped drive the results.

Source:RT News

No login required to comment. Name, email and web site fields are optional. Please remember to keep comments respectful. We believe in free speech. Unfortunately, due the actions of one online troll, we have had to implement a manual moderation system to ensure online discussion remains civil and constructive. Your views and voice are important. Your comment will be published after moderation unless it contains hate speech or defamatory statements.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Opinion

Daily Life

Wellington
broken clouds
9.8 ° C
10.8 °
9.2 °
80 %
7.2kmh
75 %
Thu
11 °
Fri
12 °
Sat
14 °
Sun
16 °
Mon
17 °
- Free Advertisement -spot_img
- Make Your Voice Heard -spot_img

Latest