Ant Group has announced a share buyback that values the company at $78.5 billion. This valuation is significantly lower than the $230 billion it was valued at nearly three years ago before its initial public offering (IPO) was halted by Chinese regulators. The buyback comes after Chinese financial regulators fined Ant and its subsidiaries a total of 7.1 billion yuan ($984 million) for violations related to consumer protection and corporate governance.
The regulatory crackdown on Ant Group and other tech giants was triggered by Jack Ma’s critical remarks about Chinese financial regulators and banks in a speech delivered in late 2020. Ma’s comments set off a series of measures that included fines for alleged anti-competitive behavior and bans from app stores citing concerns about data security. The regulatory actions had a profound impact on the fortunes of not only Ant Group but also other major players in the Chinese tech industry, including Alibaba Group, Tencent, Didi, and Meituan.
However, with the recent fines imposed on Ant Group, analysts believe that the regulatory pressure on the Chinese internet sector is finally easing. Jefferies analysts stated that the removal of the regulatory “overhang” will likely unlock the valuation of Alibaba and Tencent and benefit other Chinese fintech firms like Lufax by providing better visibility on the sector’s outlook.
The fines levied against Ant Group also raise the possibility of the company reviving its long-anticipated IPO. The IPO was abruptly canceled in November , just two days before it was scheduled to commence trading. The cancellation came after Ant Group had priced its shares, valuing the company at over $310 billion. If Ant Group were to proceed with the IPO, it could become one of the largest share sales in history.
While the regulatory crackdown seems to be coming to an end, the impact on the stock prices of affected companies lingers. Alibaba’s stock price, for instance, is still down more than 70% from its peak in October 2020, resulting in a loss of over $645 billion in market capitalization since the regulatory campaign began.
With the regulatory crackdown on the Chinese tech industry beginning to ease, there is a glimmer of hope for private firms as China aims to support their revitalization. The potential revival of Ant Group’s IPO and the prospects of stock price recovery for major players like Alibaba and Tencent indicate a positive outlook for the sector. However, the road ahead remains uncertain as these companies navigate the evolving regulatory landscape and work towards rebuilding investor confidence.
The European Union (EU) is launching investigations into tech giants Apple, Google, and Meta (Facebook’s parent company) over concerns they might not be following a new law designed to promote fair competition in the digital market.
Google Chrome is on the brink of initiating a seismic shift that threatens to reshape the very foundation of the modern internet. The imminent demise…
In a highly anticipated market debut, Reddit stock took off, closing its first day of trading with a staggering 48% surge from its initial public offering (IPO) price of $34 per share. The social media giant’s stock concluded the day at $50.44, propelling its market capitalization to over $8 billion.
In a significant move in Vietnam’s corporate landscape, Vingroup, the country’s largest conglomerate, has completed the sale of a 41.5% stake and other assets in its retail arm, Vincom Retail, for a staggering $1.6 billion. This transaction ranks among the largest mergers and acquisitions (M&A) deals in Vietnam in recent years, underscoring the dynamism of the country’s economy and corporate sector.
The integration of artificial intelligence (AI) into various facets of healthcare has revolutionized patient care, and its impact on surgery is poised to be profound. Leveraging AI’s capabilities to connect, analyze, and predict based on operating room data holds the promise of enhancing surgical efficiency and clinical decision-making. Recognizing this potential, NVIDIA has partnered with Johnson & Johnson MedTech to explore new AI capabilities within the realm of surgery, with the goal of advancing the company’s connected digital ecosystem for surgical procedures.
Apple is reportedly in discussions with Alphabet, Google’s parent company, regarding the licensing of Google’s “Gemini” artificial intelligence (AI) training model for integration into iPhones.
An Illinois jury has delivered a significant verdict in a case involving Mead Johnson’s Enfamil baby formula, ordering the company to pay $60 million to the mother of a premature baby who died from an intestinal disease after consuming the formula.
In the fast-paced world of software development, innovation is the name of the game. Cognition, a leading tech company, has introduced a groundbreaking solution that promises to transform the industry as we know it: Devin AI, the world’s first AI software engineer. Devin AI is not just another tool in the developer’s toolbox; it’s a game-changer that leverages the power of artificial intelligence and machine learning to automate coding tasks and streamline the development process.
When it comes to acing a job interview, there are certain tactics that can help you stand out and impress prospective employers. From showcasing your passion for the role to demonstrating problem-solving skills, there are plenty of strategies to employ. However, it’s equally important to be mindful of phrases that could raise red flags during the interview process.
The ongoing saga between the United States and ByteDance, the Chinese tech giant behind the popular social media platform TikTok, has taken another turn. With the House approving a bill requiring ByteDance to divest TikTok within roughly six months, the possibility of a forced sale or effective ban looms large.
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Vietnam received recognition in the 29th World Travel Awards in numerous categories
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First NFT vending machine in the world is now operational in New York
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The LEGO Group today began construction on a new $1 billion factory in Binh Duong, Vietnam
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