16 Sept 2021
China’s Regulatory Crackdown Wiped Hundreds of Billions Off Companies
The Index Today
China's regulatory crackdown has trapped sectors from technology to education to property, wiping hundreds of billions off the market capitalizations of some of its largest companies and putting investors on alert over who may be next.
Here are some of the largest names that have been affected so far:
The despair of China's biggest e-commerce company began in late 2020 when China abruptly suspended the record $37 billion stock market debut of its financial affiliate Ant Group and later fined Alibaba $2.75 billion for abusing its market dominance.
China's largest gaming and social media company has lost more than HK$2.7 trillion ($347.13 billion) in market value since its shares reached an all-time high in mid-February.
China's largest ride-hailing company became the target of a cybersecurity investigation by Chinese authorities days after its New York initial public offering in June, who ordered its app to be removed from Chinese app stores and barred it from registering new users.
The food delivery company became the target of an antitrust probe in April and experienced a selloff in its shares a month later after its founder and Chief Executive Wang Xing posted an ancient poem on social media that was perceived by some as criticizing the government and President Xi Jinping.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP
China's largest provider of private educational services has seen the market value of its U.S.-listed shares fall by $7.4 billion since July, when Beijing issued new rules barring for-profit tutoring on the school curriculum.
($1 = 7.7781 Hong Kong dollars)