Alibaba (09988) founder Jack Ma’s business empire has come under an unprecedented crackdown by the mainland government, with analysis suggesting that one of the messages is that the golden years of the mainland tech giant are over!
According to foreign news reports, Ali was fined 18.228 billion yuan by the Chinese authorities for monopolizing the market, and the authorities also ordered the Ant Group to rectify the situation. It is no coincidence that the Chinese authorities yesterday (13) asked 34 platform companies, including Tencent Holdings (00700) and Byte Jump, to conduct a comprehensive self-examination within one month and thoroughly rectify each item.
The report pointed out that for Jack Ma and his fellow Internet giants, these actions reveal the message that the 10-year unfettered expansion of large mainland technology companies, which can even challenge the path of Facebook and Google, has come to an end. The days when online giants like Alibaba, Ant or Tencent could leverage their financial strength and vast amounts of data to overwhelm rivals in other fields are no more.
Mark Tanner, founder of Shanghai-based market research firm China Skinny, said that with the overhaul of Ant Group and Alibaba’s 18.2 billion yuan fine, the golden age is over for large mainland tech companies, and for those that aren’t in the same extreme situation, they will scale back their expansion strategies and adjust their businesses to the new environment. .
Shen Meng, a director at Beijing-based investment bank Chanson Capital (Chanson & Co.), believes the days of reckless expansion and frenzied growth are behind us. Shen was quoted as saying that from now on, the growth of these companies may be strictly controlled by the government, and that companies will have to face the reality that they need to streamline their non-core businesses and reduce their influence in the industry as a whole, and that the cases of Alibaba and Ant Group will make peers refer to active restructuring.
He also believes that all industry players are on the radar of the regulatory unit, and the actions of the authorities, depending on the respective reactions of the industry afterwards, it is better for the industry to take the initiative to make adjustments, rather than restructuring only after the regulator gives the order, because if so, the authorities may not consider the best interests of the industry.
Recent Comments