Tencent and Alibaba Group have lost more than $100 billion in July as China cracked down on internet giants
- Social media and entertainment behemoth
Tencentlost $170.2 billion while Alibaba Grouplost $103.9 billion market capitalisation in the month of July.
- Tencent’s $170 billion slide in market share is one of the fastest evaporation of shareholder wealth worldwide during this period, Bloomberg data shows.
- Check out the latest news and updates on Business Insider.
Social media and entertainment behemoth Tencent — which lost the exclusive music streaming rights and charged with antitrust fines — saw its market value dip by $170.2 billion in July, according to Bloomberg data ,which showed it be one of the fastest evaporation of shareholder wealth worldwide. Tencent had rights to more than 80% of all music tracks in the market and, therefore, an unfair advantage over rivals, said the ruling.
At the same time,
While tightening the regulation of internet companies, China has reportedly argued that the industry (estimated to be worth $260 billion in 2018) has been “hijacked by capital”. Beijing intends to control companies that “disrupt market order, threaten data security or regulate consumer’s rights.”
Didi, the ride hailing app backed by Softbank and Tencent, was banned from app stores just days after a $4.4 billion IPO on Wall Street. The stock is down over 30% since listing.
The authorities even barred apps from showing pop-up windows, fearing “misinformation”.
This has led Hello Inc, a bike sharing app, and Xiaohongshu (a peer of Pinterest), to stall their US listing plans.
From after-school tutoring to music streaming apps and shopping to bike sharing startups have come under the government radar. China has even ordered education firms to go non-profit.
SEE ALSO: Microsoft is in advanced talks to invest in OYO at a valuation of $9 billion, say media reports
Bitcoin’s largest corporate investor wants to buy more despite taking a loss
Popular on BI
- Future of Work 2021: Work from home is here now, but people demand some physical sense at work
- Deadline for PAN-Aadhaar linkage extended till March 2022
- Here is what the Indian film industry can learn from gig economy firms like Zomato and Urban Company
- Cat lover? Here’s a chance to do your favourite thing for research — watch cat videos
- India should let tele migration bloom before worrying about how to tax writers, creators and consultants, says India’s Chief Economic Advisor K V Subramanian