China buys Alibaba, Tencent shares that give Beijing rights over business

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China's government is buying Alibaba and Tencent shares that give the Communist Party special rights over certain business decisions, report says

The Chinese government is buying shares in Alibaba, Tencent and other tech companies to be more deeply involved in their businesses,The stakes usually involve a 1% holding in a key segment and are known as"special management shares," which give Beijing rights over certain decisions at the companies.

In the case of e-commerce giant Alibaba, China's internet regulator took a stake last week, when an arm under the state investment fund set up by the Cyberspace Administration of China bought a 1% share of Alibaba's Guangzhou Lujiao Information Technology subsidiary. Meanwhile, details of the Chinese government's plan to buy shares in internet giant Tencent are still under discussion, the report said.

The same fund also purchased a 1% stake in a unit of TikTok parent ByteDance, called Beijing ByteDance Technology, gaining the right to name one of its directors. Communist Party official Wu Shugang, who oversaw online commentary at China's internet regulator, joined the board.

 

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