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Sport U.S. Decides Against Investing Ban on Alibaba, Tencent and Baidu

04:50  14 january  2021
04:50  14 january  2021 Source:   msn.com

Alibaba is facing an 'existential crisis'

  Alibaba is facing an 'existential crisis' This year could be the most consequential for Alibaba since it was founded two decades ago. © Qilai Shen/Bloomberg/Getty Images A motorist travels past an Alibaba Group Holding Ltd. office building in Shanghai, China, on Thursday, Dec. 24, 2020. China kicked off an investigation into alleged monopolistic practices at Alibaba and summoned affiliate Ant Group Co. to a high-level meeting over financial regulations, escalating scrutiny over the twin pillars of billionaire Jack Mas internet empire.

(Bloomberg) -- U . S . officials deliberated but ultimately decided against banning American investment in Alibaba Group Holding Ltd. and Tencent Holdings Officials also debated blocking search leader Baidu Inc. but dropped the plan, the person added. Alibaba ’ s U . S .-listed shares rose 4.3% while

tech giants Alibaba , Tencent and Baidu , but it will prohibit Americans from investing in nine other firms in a U . S . officials have ultimately decided against adding Alibaba , Tencent and Baidu to the list of Alibaba and Tencent surged 6% and 3% immediately after the report, while Baidu shares on

(Bloomberg) -- U.S. officials deliberated but ultimately decided against banning American investment in Alibaba Group Holding Ltd. and Tencent Holdings Ltd., a person familiar with the discussions said, removing a cloud of uncertainty over Asia’s two biggest corporations.

The Treasury Department blocked a Pentagon effort to add the two internet firms on grounds they aided the military, the person said, asking not to be identified discussing private talks. Officials also debated blocking search leader Baidu Inc. but dropped the plan, the person added. Alibaba’s Hong Kong stock climbed as much as 3.9% while Tencent rose almost 5% on news of the reprieve, which was first reported by the Wall Street Journal. Their dollar bond spreads tightened Thursday morning.

Jack Ma was almost bigger than China. That's what got him into trouble

  Jack Ma was almost bigger than China. That's what got him into trouble Billionaire Jack Ma is a rare figure in China: a charismatic entrepreneur who speaks his mind and pushes boundaries. © Thibault Camus/AP FILE - In this May 15, 2019, file photo, founder of Alibaba group Jack Ma arrives for the Tech for Good summit in Paris. Ma hasn't been seen in public since he angered regulators with an October 2020 speech. That is prompting speculation about what might happen to the billionaire founder of the world's biggest e-commerce company. (AP Photo/Thibault Camus, File) That free-wheeling attitude made the Alibaba co-founder renowned inside and outside of his home country.

Some investors expressed skepticism, however, that Alibaba and Tencent would face long-term restrictions - given that they are worth a combined Trump escalated measures against Chinese firms in November with an executive order that bans U . S . investors from buying shares of Chinese firms.

Alibaba Group Holding Ltd. and Tencent Holdings Ltd. led a technology stocks selloff as the Trump “The U . S . behavior is against international trade rules and principles of fair competition,” Chinese Alibaba may face minimal financial and operational disruptions from a potential ban considered by

The decision removes uncertainty hanging over Chinese social media and gaming leader Tencent and Alibaba, the e-commerce titan founded by billionaire Jack Ma that’s now under intense regulatory scrutiny by Beijing regulators. President Donald Trump has signed an amended version of his executive order banning investment in Chinese military-linked companies, the White House said in a statement Wednesday that didn’t mention any company by name.

Imposing a ban on the pair would have marked the most dramatic escalation yet by the outgoing administration, given the sheer size of the two firms and the difficulty unwinding positions. At more than $1 trillion, their combined market value is nearly twice the size of Spain’s stock market, while the firms together account for about a 10th of the weighting for MSCI Inc.’s emerging markets benchmark.

China launches investigation against Alibaba and cracks down on the tech empire of billionaire Jack Ma

 China launches investigation against Alibaba and cracks down on the tech empire of billionaire Jack Ma China cracks down on Jack Ma's ever-growing tech empire. Chinese regulators said they had launched an anti-monopoly investigation into Alibaba, the country's largest tech company. Separately, other regulators said they were in talks with Alibaba's subsidiary, fintech company Ant Group. This is yet another sign of the country's heightened control of tech giants. Ma is the co-founder of Alibaba and Ant and China's richest person.

Some investors expressed skepticism, however, that Alibaba and Tencent would face long-term restrictions - given that they are worth a combined Trump escalated measures against Chinese firms in November with an executive order that bans U . S . investors from buying shares of Chinese firms.

The Trump administration has scrapped plans to blacklist Chinese tech giants Alibaba , Tencent and Baidu Senior officials in the administration had been considering plans to add the firms to a list of alleged Chinese military companies, which would have subjected them to a new U . S . investment ban .

Read more: Alibaba’s Jumbo Bond Deal Goes Quiet With Ma Out of Sight

Alibaba and Tencent clamber back up after U.S. spares them from investment ban © Bloomberg Alibaba and Tencent clamber back up after U.S. spares them from investment ban

Citing national security, Trump previously signed an executive order in November requiring investors to pull out of Chinese companies linked to that nation’s military. The Defense Department will add more companies to the roster, the person said without elaborating.

That would further fray the relationship between the world’s two largest economies, which have clashed over everything from Covid-19 to Hong Kong. Authorities in Washington have ramped up efforts to deprive Chinese companies of U.S. capital in the final months of the Trump administration, adding to economic tensions as President-elect Joe Biden prepares to take over this month.

Hasty measures have at times sown confusion in markets and prompted price swings, such as when the New York Stock Exchange reversed course twice on a decision to delist three Chinese telecommunications companies. The NYSE is now proceeding with its original delisting plan after U.S. Treasury Secretary Steven Mnuchin disagreed with its decision to give the firms a reprieve.

Trump’s order banned trading in affected securities starting Jan. 11. If Biden leaves Trump’s executive order in place, U.S. investment firms and pension funds would be required to sell their holdings in companies linked to the Chinese military by Nov. 11. And if the U.S. determines additional companies have military ties in the future, American investors will be given 60 days from that determination to divest.

(Updates with Hong Kong action and chart from the second paragraph)

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The death of a 22-year-old Chinese tech employee shows the industry's toxic '996' work culture, championed by top execs like Jack Ma .
The woman, who worked for the e-commerce firm Pinduoduo, collapsed after leaving work at 1:30 a.m., and has become a symbol of the anti-996 movement.Paramedics spent six hours trying to revive her, but it was in vain. She died six hours later in the hospital, according to the South China Morning Post.

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