Tencent’s Chairman of the Board Ma Huateng (L) and Alibaba co-founder Jack Ma (R) attend a meeting to celebrate the 40th anniversary of the Communist Party’s reform and opening up on December 18, 2018.
Following the revelation that the Chinese Communist Party (CCP) authorities have adopted a “raise, snare and kill” strategy for foreign companies, Chinese consulting equity investment and financing expert Zang Qichao recently re-released a video of a speech revealing how Tencent has monopolized and thrived.
On April 10, Alibaba was fined a huge amount of money, the highest amount since the Communist Party of China enforced the Anti-Monopoly Law. But Alibaba’s fine could alert other Chinese tech companies to be the next target.
Dickie Wong, executive director of research at Goldilocks Securities in Hong Kong, said, “Not only Alibaba, but all the other Chinese Internet majors, including Tencent, the market will start speculating which company will be the next target.”
Once again, expert Zang Qichao has revealed a video of a speech revealing how Tencent has a monopoly and is thriving. In this video, Zang Qichao said, Ma Yun can’t do Ma Huateng, why? Ma Huateng if this disorderly expansion, is very scary.
“Do you know who invested in Poundland? Ma Huateng; you know who invested in Jingdong? Ma Huateng; you say who invested in Meituan? Ma Huateng; you say who invested in BYD? Ma Huateng; you said who invested in Tesla? Ma Huateng; you say who invested in Xiaohongshu? Ma Huateng. You can probably think of the platform, are Ma Huateng investment, and basically are the majority shareholder, is small again is also a second shareholder. Tencent is actually not an Internet company at all, it’s a typical investment company, and the things it grabs in its hands are what you want.”
Zang Qichao mentioned: “(Tencent) it does anything in three steps: the first step is always free, its QQ is free, its WeChat is free; the second step it is always pirated, you engage in what, it pirated what …… you say you want to play something, Tencent one day said I want to invest in you, you do not agree to it the next day It will destroy you. Why? Because everything it does is ultimately for one purpose: to circle 1.4 billion losers on its platform ……”
After Alibaba, China’s largest social media and gaming company Tencent recently faced the risk of being overhauled as the Communist Party’s State Administration of Market Regulation (SAMR) is launching an anti-monopoly investigation into it. Citing a number of people who asked not to be named, media reported that several members of the central inspection team have been stationed at Shenzhen-based Tencent Group to conduct a series of investigations.
According to Reuters, Ma requested a meeting with Gan Lin, deputy director of the State Administration of Market Regulation, and other senior officials, and Wu Zhengguo, head of the anti-monopoly bureau, also participated in the meeting.
Multiple people familiar with the matter told Reuters that Tencent is expected to be the next Chinese company to see stricter regulation. The Market Supervision and Administration Bureau is gathering information to investigate WeChat’s monopolistic practices and how the app undermines fair competition and squeezes out smaller rivals.
Tencent shares took a big dive late March 12, plunging about 225.4 billion yuan in an hour on the back of financial regulation and other unfavorable news.
Some scholars believe that in recent years, the efficiency of China’s state-owned enterprises has been deteriorating, but only large technology companies continue to maintain high earnings growth, becoming the target of government “harvesting”.
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