Do you really believe that regulations will slow down the tech trend in China? Increase the competition?
According to CNBC News, China’s biggest technology companies lost a total of $280 billion in Hong-kong markets on Wednesday. Hang Seng Tech index also nosedived at 6.23% on the due date. world’s giant e-commerce platform lost around 9.8% on the event. Also, the Mobile company Xiaomi, a delivery service firm Meituan and an e-commerce giant jd.com lost 8.18%, 9.67%, and 9.2% respectively.
The Chinese regulator drafts a rule to curb the unwanted situation by the internet platform and it created panic on the market.
the sudden decision by the Chinese regulator to suspend Ant’s IPO drove Alibaba to count a loss of around 9.8% because it is taking a 33% stake in the Ant group. they suspended the ant group’s latest IPO at the shanghai and Hong-Kong Market.
It was very bad news for five Chinese technology companies that lost around $280 billion for drafting regulation by a Chinese regulator firm. Last Monday the Chinese central bank and regulation firm draft some points to halt the Ant group’s IPO on the shanghai and Hong-Kong Market. At this point, Alibaba with some more giant tech firms lost a lot of share on the market.
IT was a hell decision by the Chinese government, regulator, and central bank. the world is trying to recover from the loss of covid-19 lockdown and will help companies to recover this loss by reducing employee or something else.