China should curb tech companies and prevent monopolies, these words from an advisor to the Chinese Central Bank has sent shivers down the tech stocks across the Asia-Pac region.
Hong Kong-listed shares of Alibaba dropped 4% following a FT report that the Mainland wants to break up Ant Group’s Alipay and force the creation of a separate loans app. This comes as PBOC advisor said internet companies were more prone to monopoly as they tend to be larger and have stronger barriers to entry due to their control over data. The Hang Seng Tech index dropped almost 3% post these comments.
It was not just tech stocks, speed breakers on for auto companies as well after the country’s industry minister said consolidation in the sector is needed as there are “too many” auto firms in China.
This is the latest in the crackdown from China that has ranged from edtech to e-commerce.