Business Maverick: Legendary China Bets Unwind as Buffett, SoftBank Sell

But now big-name investors who’ve made billions from these shares are taking money off the table, underscoring growing angst over the prospects for China’s biggest companies as President Xi Jinping tightens the government’s grip on the private sector and the economy falters under persistent Covid lockdowns.

That comes a month after Japan’s SoftBank Group Corp. said it unloaded an enormous slug of Alibaba, the e-commerce pioneer that had long been China’s most valuable company. SoftBank, under pressure from botched startup bets, raised more than $17 billion through the sale of forward contracts on the stock. Warren Buffett’s Berkshire Hathaway Inc. is trimming its stake in electric-vehicle maker BYD.

“There’s a big question mark over the growth model of Chinese tech giants like Tencent and Alibaba,” said Ke Yan, analyst with Singapore-based DZT Research. “The government crackdown brought significant uncertainty.”

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Richemont Shareholders Reject Activist Bluebell’s DemandsRichemont shareholders rejected Bluebell Capital Partners Ltd.’s proposal to add the former head of Bulgari to its board, a defeat for the activist investor’s campaign to boost shareholder representation. Sued for peace against Solvay, defeated by Richemont, totally rebuffed by Glencore. Not the best record, but the best possible evidence for what I've said all along about Bluebell - in a rush for relevance but lacking in integrity or coherent intent.
Source: dailymaverick - 🏆 3. / 84 Read more »