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China crackdown wipes billions off top companies

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China’s regulatory crackdown has wiped hundreds of billions off the market capitalisations of some of its largest companies and put investors on alert over who may be next

China is cracking down on some of its largest companies with regulatory stings wiping hundreds of billions of dollars off their market value.

From technology, to education and property – it seems no sector is safe from Beijing’s far reaching tentacles.

Let’s take a closer look at who’s been affected so far.

First up is Alibaba.

China’s biggest e-commerce company was founded by this man, once China’s richest person – Jack Ma.

Ma made a speech back in October 2020 blasting the country’s regulatory system.

Those stinging comments are widely viewed as the trigger for what came next. Beijing abruptly suspended the record $37 billion stock market debut of Alibaba’s financial affiliate Ant Group.

Later, Chinese regulators fined the company $2.75 billion for abusing its market dominance. Alibaba’s U.S.-listed shares have shed more than $400 billion in value since Ma made that speech.

Next up is China’s largest gaming and social media company Tencent. It was fined for failing to report past deals to anti-trust regulators.

Tencent has also been affected by China’s latest efforts to combat gaming addiction among minors.

In August under-18-year-olds were banned from playing video games for more than three hours a week. The company has lost nearly $350 billion in market value since February.

The food delivery company – Meituan – became another target of an antitrust probe in April, after its founder and Chief Executive Wang Xing posted an ancient poem on social media.

Some perceived it as criticizing the government and President Xi Jinping. Meituan has lost more than $150 billion in value since February.

The company has also been accused of violating consumer rights and mistreating delivery drivers.

China’s largest provider of private educational services has seen its value tumble following a policy shift in Beijing.

In July, the Communist Party issued new rules barring for-profit tutoring on the school curriculum.

Since then, the market value of New Oriental Education and Technology Group’s U.S. listed shares has fallen by $7.4 billion.

Beijing wants to ease pressure on school children and reduce a cost burden on parents.

BEIJING, CHINA – MAY 15: Chinese President Xi Jinping attends a news conference at the end of the Belt and Road Forum for International Cooperation on May 15, 2017 in Beijing, China. The Forum, running from May 14 to 15, is expected to lay the groundwork for Beijing-led infrastructure initiatives aimed at connecting China with Europe, Africa and Asia. (Photo by Nicolas Asfouri-Pool/Getty Images)

But analysts warn that the new rules threaten to decimate the country’s private education sector.

So what’s the motive behind Beijing’s regulatory crackdown?

President Xi Jinping has called for China to achieve “common prosperity.”

The campaign seeks to narrow the yawning wealth gap between the rich and the poor.”Common prosperity” as an idea is not new in China, but a sharp escalation in official rhetoric and a crackdown on excesses in industries has rattled investors in the world’s second-largest economy.

Reuters.

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Business

Disney’s Drama

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What’s going on at Disney and why is the world’s largest entertainment company in trouble?

 
Dreams are a wish your heart makes, or at Disney, dreams are having a tough time of coming true.

After decades of turning children’s dreams into fantasies, the mouse-house is facing a crisis of leadership.

This Ticker Original looks at how the Walt Disney Company got here, and what happens next. #disney #bob iger

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The Tech Market Crash

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Since the Global Financial Crisis, tech companies have been riding high and making billions, so what happened?

 
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Across Silicon Valley, and spreading to Wall Street, the once darlings of the Nasdaq were suddenly hit hard.

So what happened, and where to from here?

This Ticker Original investigates. #snapchat #apple #tech stocks #nasdaq

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Shell delivers record 2022 profit

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Petrol company Shell has delivered a record $40 billion profit in 2022

It comes on the back of surging energy prices, and the war in Ukraine.

The company also reported a fourth-quarter profit of almost $10 billion, beating estimates.

The $40 billon in annual profit soared past the previous record of $31 billion in 2008.

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