Alibaba, Baidu, JD.com, Tecent, Bilibili Stocks Lose Further Ground Amid Regulatory Crackdown
The Chinese government is considering further regulatory proposals, including measures to safeguard the rights of drivers working for online companies and increasing oversight of the livestreaming industry, according to Bloomberg.
Alibaba Group Holding Limited (NYSE: BABA) came onto the regulator’s radar late last year when China took the e-commerce giant to task for its dominant market position. The company was slapped with a fine of $2.87 billion.
Regulators also forced Alibaba’s Ant Financial subsidiary to reorganize as a bank holding company to bring it under stricter supervision. The fintech subsidiary of Alibaba was also forced to shelve its proposed IPO.
China extended the crackdown to other high-profile tech names such as Tencent Holdings Limited (OTC: TCEHY), and subsequently to private tutoring companies.
Tencent Warns Of Further Regulatory Action: The Chinese government can make fairly substantial changes to how companies use data for advertising, Tencent said on its Wednesday earnings call.
Despite the regulatory overhang, the Internet technology company reported fairly robust quarterly results.
Related Link: 3 Alibaba Analysts Say Valuation Is Attractive Despite Q1 Disappointment
Baidu Prices Debt Offering: Chinese search engine Baidu, Inc. (NASDAQ: BIDU) priced its $1-billion note offering, consisting of $300 million of 1.625% notes due 2027 and $700 million of 2.375% notes due 2031. The company expects to use the net proceeds for general corporate purposes, including paying off of certain existing indebtedness.
Bilibili Q2 Results: Video sharing platformBilibili Inc. (NASDAQ: BILI) reported Thursday better-than-expected second-quarter revenues but a wider loss. The revenue guidance for the third quarter was in line.
China Tech Stock Price Action:
In premarket trading Thursday,
Alibaba shares are hitting a nearly two-year low at $166.33, down 3.49%.
Baidu was slipping 2.59% to $139.26.
Bilibili was losing 3.16% to $66.30.
JD.com, Inc. (NASDAQ: JD) shares were down 3.17% to $63.45.
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