Why is China clamping down on companies?

Try refreshing the page. China is clamping down on its “excessive work culture that pervades the country’s largest corporations,” Bloomberg reported. President Xi Jinping’s administration launched a campaign to control the fast-growing power of the country’s biggest corporations.

Does the Chinese government like Alibaba?

The Chinese government has much weaker control over tech companies like Alibaba than over financial institutes such as the “Big Five” banks.

What is the China crackdown about?

China has been on a months-long regulatory crackdown aimed broadly at its internet giants, and has introduced a series of legislation on issues ranging from anti-monopoly to data security. The moves have sent investors scrambling and wiped out billions of dollars in value from the country’s tech titans.

Why is China’s government so worried about Alibaba?

After the $2.8 billion fine, Alibaba executives said they were unaware of any other antitrust investigations. The government remains concerned about Alibaba’s influence over public opinion given its diverse media assets and a significant stake in Weibo.

How much of Alibaba will Suning invest in Alibaba?

August 10, 2015: Alibaba will invest $4.63 billion in Suning Commerce (one of China’s largest electronic retailers in China) Alibaba gets a 19.99\% stake in Suning and Suning will in turn buy 27.8 million shares of Alibaba for $2.28 billion and end up with a 1.1\% stake in Alibaba. (talk about a convoluted partnership, no?)

Is the appointment of a government representative to Alibaba a concern?

Nonetheless, the appointment of a government representative to Alibaba still raises concerns about the tech giant’s future. Let’s discuss the existing relationship between Alibaba and the Chinese government, and whether or not the latter is tightening its grip on the former.

Should investors jump to conclusions on Alibaba stock?

Therefore, investors shouldn’t jump to conclusions. Instead, they should focus on the facts that matter the most: Alibaba’s revenue rose 42\% annually last quarter, its adjusted net income soared 54\%, and it remains the biggest e-commerce and cloud player in China by a wide margin.