Beijing's Regulatory Crackdown Wipes $1.1 trln off Chinese Big Tech

The Chinese national flag is seen in Beijing, China. Credit: Reuters File Photo
The Chinese national flag is seen in Beijing, China. Credit: Reuters File Photo
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Beijing's Regulatory Crackdown Wipes $1.1 trln off Chinese Big Tech

The Chinese national flag is seen in Beijing, China. Credit: Reuters File Photo
The Chinese national flag is seen in Beijing, China. Credit: Reuters File Photo

China's major tech companies have shed more than $1 trillion in value -equivalent to the entire Dutch economy - since the government's regulatory crackdown on the sector began more than two years ago, according to Refinitiv data.
Investors are now hoping the strict rules that have stymied growth since late 2020 will start to ease, after the People's Bank of China (PBOC) indicated a change in direction could be under way.
The central bank said on Friday most of the main problems for platform companies' financial businesses had been rectified, and regulators would shift their focus to the industry as a whole rather than specific companies.
The state planner on Wednesday praised Tencent Holdings, the world's largest video game company, and e-commerce titan Alibaba Group, for their contributions to China's tech innovation, in another sign that authorities are warming to the technology sector once more.
Analysts pinpoint the shelving of Alibaba affiliate Ant Group's $37 billion initial public offering (IPO) in November 2020 as the start of a sweeping regulatory crackdown on mainland China's tech firms, which had grown rapidly in size and influence.
Since then, roughly $1.1 trillion has been wiped from the market capitalisation of the Hong Kong-listed stock of Alibaba Group, Tencent, Chinese food delivery giant Meituan , search engine provider Baidu Inc and e-commerce site JD.com.
Share prices for the five companies have plunged between 40.4% and 71% during that time.
Technology stocks in Hong Kong have rallied 4.1% since Monday as investors bank on an easing regulatory environment to boost earnings, but some analysts have sounded a note of caution.
"Mega-cap tech companies will allocate increasingly large amounts of capital expenditure towards developing generative AI technologies and products in a hostile external environment, potentially impacting profitability," said Redmond Wong, Saxo Markets strategist in Hong Kong.
Steven Leung, UOB Kay Hian sales director, said current valuations would last "until we see more supporting policies from authorities".



KFSHRC Performs World’s First Robotic-Assisted BiVAD Implantation

The procedure was meticulously planned and benefited from 3D imaging technologies - SPA
The procedure was meticulously planned and benefited from 3D imaging technologies - SPA
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KFSHRC Performs World’s First Robotic-Assisted BiVAD Implantation

The procedure was meticulously planned and benefited from 3D imaging technologies - SPA
The procedure was meticulously planned and benefited from 3D imaging technologies - SPA

‏King Faisal Specialist Hospital and Research Center (KFSHRC) in Riyadh has performed the world’s first implantation of two artificial pumps for biventricular support (BiVAD-HMIII) using robotic technology on a patient with advanced heart failure.

According to a press release, this groundbreaking procedure opens new horizons in circulatory support techniques for patients with complex cardiac conditions, marking a significant medical achievement that culminated in the patient’s recovery within a short period following the surgery.

‏The procedure represents a major advancement in the treatment of bilateral heart failure, which was traditionally performed through full sternotomy, an approach associated with higher surgical risks and prolonged recovery.

The cardiac surgery team at KFSHRC, led by Prof. Feras Khaliel, successfully performed the operation through small incisions using remotely controlled high-precision robotic arms, resulting in reduced blood loss, lower risk of infection, and faster patient recovery.

The procedure was meticulously planned and benefited from 3D imaging technologies, real-time surgical navigation, and innovative solutions for safely securing the mechanical assist devices, added the release.

‏KFSHRC aims to publish the results of this procedure in peer-reviewed medical journals and present them at global cardiology conferences to promote knowledge exchange and establish innovative partnerships with leading international centers in robotic care and advanced heart failure management.

According to SPA, these milestones serve as evidence of its leadership in adopting cutting-edge cardiac technologies and managing critical conditions with the highest standards of precision and safety, further reinforcing its position as a leading academic medical center both regionally and globally.