Investigations by regulators on China’s giant Alibaba Group led to the second day of frantic selling among China’s largest tech firms. Major corporations are driven by fears that antitrust scrutiny will spread beyond Jack Ma’s internet empire putting under the radar China’s most powerful corporations. The latest Communist Party’s crackdown on Alibaba and its three largest rivals already made them shed nearly $200 billion in Hong Kong.
Alibaba Group, founded at Hangzhou in China, is a multinational conglomerate holding company specializing in e-commerce, retail, internet, and technology. The founder Jack Ma of the e-commerce giant is considered one of Asia’s richest men. Ma had after two decades of building Alibaba turned it into an e-commerce powerhouse worth over $460 billion.
Once applauded as the bearers of China’s economic and technological top players, Alibaba and its contemporaries are now face increasing pressure from investor regulators. It seems the CCP is increasingly getting worried about the speed with which they are spreading across several verticles like media and education and subsequently gaining influence over the daily lives of hundreds of millions.
Chinese supremo has made things for its billionaires and extremely wealthy more precarious in the past few years. Xi Jinping has been stepping up efforts to ensure wealth is more evenly distributed among the nation’s 1.4 billion people.