(Teleborsa) – Alibaba Group closed today’s session down 4.23%, Tencent Holdings by 2.45%, BYD Company by 1.6%, Xpeng by 2.35%. These are some of the stocks – listed on the Hong Kong Stock Exchange – affected by new regulatory measures and yes statements from members of the Chinese government, which affect both the technological sector and that of electric vehicles.
The most impactful news is that Beijing wants dismember Alipay, the superapp of over 1 billion users owned by the Ant group of Jack Ma (founder of Alibaba) and create a separate app for the lending business. According to the Financial Times, Chinese regulators have ordered the company to separate the backend of its two lending businesses, Huabei, which is similar to a traditional credit card, and Jiebei, which grants unsecured small loans, from the rest of the its financial offers. The plan would also require Ant to hand over user data to a new credit assessment joint venture that would be partially state-owned. The news hit Alibaba in the first place, but also the rest of the tech stocks, with the Hang Seng TECH Index losing 2.27%.
The tech giants were also impacted by the words of a spokesperson for the Ministry of Industry and Information Technologies (MIIT). Regulators intend to end a long-standing practice of the tech giants mutually block links on their sites. Limiting normal access to internet links without adequate reason “affects user experience, harms users’ rights and disrupts market order,” Zhao Zhiguo said at a press conference. “We are currently leading companies interested in perform a self-examination and rectify yourself“, He added, without specifying the companies concerned and what the consequences would be for those who do not respect the new guidelines.
Finally, the shares of Chinese electric vehicle companies – such as BYD Company and Xpeng – fell after the country’s Minister of Industry said it was consolidation in the sector is needed as there are “too many” electric vehicle manufacturers in China.