For much of the year, markets have been rattled by Beijing’s ever-increasing regulatory onslaught, reports Barron’s.
Markets in Catastrophe
The relief sweeping across Hong Kong markets on Monday, amid evidence that China’s crackdown may not be as catastrophic as it seems, exemplifies the magnitude of the concern that has built up around it and its possible consequences.
Meituan, the Chinese food delivery service, has been fined 3.44 billion yuan ($534.3 million) for monopolistic activity, bringing an end to a months-long antitrust investigation. That may account for roughly 3% of the company’s domestic sales in 2020, but it was lower than planned.
Alibaba, the world’s largest e-commerce company, jumped 8% in Hong Kong trade, bringing its five-day rise to 27%, while Baidu and Tencent also gained.
Banks to Limit Big Companies
In recent days, morale has risen as a result of a projected virtual conference between US President Joe Biden and Chinese President Xi Jinping.
However, it might not be the best time to get carried away.
China’s central bank governor, Yi Gang, stated that the bank will continue to try to limit Big Tech’s monopolistic actions.
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Source: Barron’s
