China’s biggest tech losers | Financial Time

Tech Sector Updates

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Beijing’s regulatory assault on the Chinese tech industry has reduced the net worth of the industry’s richest tycoons by $ 87 billion since early July, hitting the fortunes of tycoons such as Tencent’s Pony Ma and Pinduoduo’s Colin Huang.

As Hudson Lockett reports in Hong Kong, the combined net worth of the two dozen Chinese tech and biotech billionaires whose holdings are tracked by Bloomberg has fallen 16% since ridesharing platform Didi Chuxing became public in the United States at the end of June. .

The $ 4.4 billion listing, which Didi launched despite private warnings from Chinese authorities to delay it due to data security concerns, was followed by a regulatory storm.

Huang, founder of e-commerce site Pinduoduo, was the hardest hit with paper losses of $ 15.6 billion, or one-third of his wealth. Pony Ma, founder of Internet group Tencent, has lost more than $ 12 billion, or 22% of his fortune. He is now ranked third richest man in China behind Jack Ma, founder of rival company Alibaba. Jack Ma’s fortune has fallen by $ 2.6 billion in the same period, but by nearly $ 13 billion since authorities canceled the initial public offering of Ant Group, the fintech platform. that he controls, in November.

Alibaba itself took another blow over the weekend, with an employee accusing her supervisor of sexual assault last month and saying the company initially failed to respond to her request for an investigation.

Meanwhile, China’s second-largest music streaming service has canceled an initial $ 1 billion Hong Kong public offering as concerns over growing regulatory crackdown affect investor confidence. Cloud Village, the music streaming business of tech group NetEase, will not go public this week due to a disappointing response from investors.

In contrast, we have learned that ByteDance, the owner of the short videos app TikTok, has revived a plan to go public, targeting a listing in Hong Kong by early next year.

For more on what’s behind the new restrictions, check out our Big Read weekend on why the crackdown has now spread to games and private guardians.

The Internet of (five) things

1. WhatsApp condemns Apple’s surveillance system
WhatsApp condemned Apple’s new child safety tools as “of great concern… Monitoring system,” even as governments around the world applauded the decision to proactively search for illegal photos of abuse The FT’s view is that Apple can hope that by cooperating with US authorities, it can push back legislation requiring it to go further. Richard Waters says Apple risked appearing ineffective to protect users of its iMessage system from harmful content and that some sort of action had seemed overdue.

2. Samsung boss to be released from prison
Lee Jae-yong, the billionaire at the head of the Samsung tech empire, will be released from prison on Friday. Lee was granted parole on Monday, eight months after being returned to prison for bribing former president Park Geun-hye to help secure control of Samsung Electronics.

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3. Delivery Hero takes Deliveroo stake
Delivery Hero, the Berlin-based food delivery group, has built a 5% stake in Deliveroo, taking the shares of its UK-based rival to their highest level since the March initial public offering. . Deliveroo shares rose 10% to 360p on Monday – they were listed at 390p.

4. SoftBank’s internal tensions over compliance
SoftBank’s attempt last year to simultaneously complete a pivotal sale of its stake in T-Mobile and Japan’s largest share buyback sparked an internal row over whether the investment group was in danger of falling. breaking insider trading rules, report Kana Inagaki and Leo Lewis in Tokyo. In the past 12 months, issues have arisen that have cast doubt on its founder’s promise to strengthen governance in the wake of the debacles surrounding WeWork and Greensill.

5. DraftKings trades for Golden Nugget
U.S. fantasy sports firm DraftKings has agreed to acquire Golden Nugget Online Gaming for $ 1.56 billion in an all-stock deal that more than doubles its valuation since it was listed through a company specialized acquisition last year. This week, How to Lead speaks with Entain CEO Jette Nygaard-Andersen about how the online gambling group has strengthened its technical team as it prepares to run a ‘club sports ”in virtual reality.

Upcoming tech week

Tuesday: Despite a record annual profit in May, SoftBank ‘The first quarter results will likely be overshadowed by headwinds for its tech portfolio. Shares of ride-sharing company Didi have fallen 40% below the June IPO price since Chinese regulators launched a data privacy crackdown, plunging SoftBank’s $ billion-dollar Vision fund into the Red. Meal delivery platform Zomato publishes first quarterly results after its well-received IPO in India. South Korean maker of the popular mobile video game PlayerUnknown’s Battlegrounds, or PUBG, debuts on the Seoul Stock Exchange. Krafton raised 4.3 billion won ($ 3.76 billion) on its IPO, the second-largest offering in the Kospi benchmark. In the United States, the game development platform Unity publishes second quarter results.

Wednesday: Samsung Electronics is expected to cut prices for luxury models, including the latest Galaxy foldable smartphones which will be unveiled today at its latest Unpacked event. Food delivery service Deliveroo reports on his first semester in London. As his battle with Just Eat in the UK intensifies and regulatory pressures increase in mainland Europe, investors may be concerned if losses worsen further. In the USA, eBay announces its second quarter results.

Thusday: Another food delivery service has revenue, with DoorDash in the United States, as well as Airbnb and data analysis company Palantir. In Asia, Foxconn has its call for quarterly results, with investors listening to advice from the iPhone assembler on its next growth engine: electric vehicles. Foxconn recently bought a chip production plant in Taiwan, a major step towards securing an automotive semiconductor source. Toshiba CEO Satoshi Tsunakawa will announce the results of his first quarter of leadership, after being tasked with reconciling shareholders with a management that has been affected by past governance scandals.

Technical Tools – Majority Bowfell Sound Bar

Majority’s Bowfell soundbar’s main claim to fame is that it’s the best-selling soundbar on Amazon, which is likely due to its bargain price of $ 42 (£ 35). It’s limited in size and sound – it’s only 15 inches wide, but still contains twin speakers and a built-in subwoofer. The quality was punchy enough to easily outperform the sound from my LG bedroom TV and it’s probably the best place for the Bowfell – delivering a better audio experience from a flat screen TV that’s not your set of main living room. There are a lot of connectivity options including RCA cables and a Bluetooth link, but I got the best results with an optical cable (not included). A remote comes with the speaker, but it’s not possible to control the volume from your primary remote, so “remote bloat” is an issue here. The Bowfell is what you’d expect for such a budget price, but could give you an audio boost in the right setting.

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