September 28, 2021

DON’T TRUST CHINA. CHINA IS ASSHOLE: Did China Just Steal $31 Billion From Alibaba and Tencent Shareholders?

This year, China’s leaders have embarked on an aggressive campaign to rein in its technology giants to promote more “common prosperity,” in a bid to reverse the wealth inequality rising in China’s economy.

Recently, China’s two biggest companies, Alibaba (NYSE:BABA) and Tencent (OTC:TCEHY), announced large RMB100 billion ($15.5 billion) social equity funds, aimed at addressing many of Beijing’s concerns. These funds are meant to help underdeveloped areas and industries, but with an uncertain financial payoff. While the companies touted both funds as voluntary, the timing and size does seem to indicate that both were the result of pressure from China’s Communist Party.

So, should shareholders in these stocks view the new funds as a “theft” of their investment, and should it make them worried about further actions?

But did China’s big guy get his ten percent?

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