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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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Rolls Royce CEO slams aviation for failing on climate targets

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Aviation needs to act on net-zero targets, that’s according to the CEO of Rolls Royce

Warren East says the sector needs to move towards bio-fuels like hydrogen and electric aircraft.

Travellers can even look forward to flying on planes that has a gas turbine that’s burning hydrogen.

Speaking at a conference in London, East says transitional technology is the answer that plane-makers are searching for.

Some companies are already looking at sustainable fuels that can offer 80 per cent off carbon emissions across their lifetime.

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Amazon halts hiring on all corporate roles

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E-commerce giant is the latest of many to close all corporate job openings due to economic concern

Amazon is pressing pause on corporate hiring for the rest of the year, as economic concerns continue to grow.

The tech giant has instructed all recruiters to close all current corporate job openings… worldwide.

This means more that ten thousand openings will be closed as of Monday evening.

The job postings that will affected include technology positions, in store and online retail businesses, and logistics operations.

However, Amazon spokesman, Brad Glasser, says the company will still continue to have a significant number of other roles open.

He says, “we have many different businesses at various stages of evolution, and we expect to keep adjusting our hiring strategies in each of these businesses at various junctures.”

The freeze sees Amazon joining Meta, Apple, and Google, who have also announced a reduction or temporary pause on hiring.

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What is Elon Musk’s “everything app”?

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Elon Musk’s Twitter deal is back on, and he says it’s the key to creating his much-anticipated ‘everything app’.

The billionaire entrepreneur had been in talks to take the social media platform private, but the deal fell through. However, after news of its reinstatement, Mr Musk said that buying Twitter is an essential part of his plans for X.

The idea behind X is a sort of super app, combining messaging, social media, payments-and lack of reliance on ad revenue, similar to the Chinese WeChat. That already has more than one billion users, but so far no equivalent exists in the West.

With Twitter under his belt, Musk believes he can make X a reality much sooner than originally planned. “It’s brought forward our X project by three to five years, but I could be wrong,” he said.

There are no further details on the X project at this time, but with Musk’s track record of visionary innovation, it’s sure to be something we’re all talking about in the near future.

Why does Elon Musk want to buy Twitter?

Elon Musk is known for his ambitious plans and big ideas, so it’s no surprise that he sees Twitter as a key piece of the puzzle for his next project, X.

The details of the deal have not been made public, but it is thought that Musk is paying a premium for Twitter.

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