The Chinese authorities have chosen a new victim after the war with Ant Group (a subsidiary of Alibaba) Jack Ma. According to Bloomberg, China will now take up arms against the Tencent conglomerate. The company was fined for antitrust violations.
According to Reuters, the purchase of the online educational service Yuanfudao in 2018 caused the claim. The fine was $ 77 thousand, but this was enough for the company’s shares on Friday, March 12, to fall 4.5 percent, and the capitalization fell to $ 810 billion. Bloomberg sources believe that Tencent will become the new target of Chinese regulators, and it will most likely be forced to separate financial, insurance and fintech assets into a separate business, which will immediately fall under stricter regulation
The war between the Chinese authorities and the Ant Group began in November 2020, when the company was not allowed to go public. The reason for the enmity could have been an investigation into the possible beneficiaries of the transaction. Among them were people associated with political clans that are displeasing to the current government. In February, Ant Group and Chinese regulators agreed on a restructuring plan that will turn the company into a financial holding.
In March, it became known that the antitrust authorities of China intend to impose a fine on Alibaba for the largest amount in the history of the country – more than $ 975 million. Alibaba, according to regulators, is fighting unfairly with competitors.