{"id":314538,"date":"2021-08-03T16:40:03","date_gmt":"2021-08-03T13:40:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/alibaba-earnings-down-as-china-tech-giants-face-turmoil\/"},"modified":"2021-08-03T16:40:03","modified_gmt":"2021-08-03T13:40:03","slug":"alibaba-earnings-down-as-china-tech-giants-face-turmoil","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/alibaba-earnings-down-as-china-tech-giants-face-turmoil\/","title":{"rendered":"#Alibaba earnings down as China tech giants face turmoil"},"content":{"rendered":"

“#Alibaba earnings down as China tech giants face turmoil<\/strong>”<\/p>\n

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\"Alibaba
\n Alibaba was the first of China’s tech giants to feel the wrath of the government.
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Chinese e-commerce leader Alibaba Group said Tuesday that it posted lower profit but maintained steady revenue growth, indicating that a government crackdown on the country’s tech giants was having little impact on its core business.\n <\/p>\n

Alibaba said its net income in the April-June quarter came in at 45.1 billion yuan ($7 billion), down five percent on-year.<\/p>\n

The Hangzhou-based company was the first of China’s tech champions to feel the wrath of a government that has become concerned over their rapid growth and data security.<\/p>\n

In April, regulators fined Alibaba a record $2.78 billion for anti-competitive practises, dragging the company to a rare operating loss in the January-March quarter.<\/p>\n

Since then, the government has taken a number of other measures against major Chinese digital players, sending their share prices tumbling.<\/p>\n

But through it all, Alibaba’s revenues remained solid as China’s economy has weathered the global pandemic well, with company executives saying it had even helped fuel online shopping.<\/p>\n

Alibaba revenue, the vast majority of which comes from its core e-commerce platforms, increased 34 percent on-year to $31.9 billion, according to the company.<\/p>\n

Still, that fell short of a Bloomberg poll of analysts who had forecast 49 percent growth.<\/p>\n

Alibaba blamed the lower net income on strategic investments. <\/p>\n

A statement accompanying the earnings announcement made no mention of the tech clampdown.<\/p>\n

“We believe in the growth of the Chinese economy and long-term value creation of Alibaba,” Chairman and CEO Daniel Zhang said.<\/p>\n

Huge fines<\/b><\/p>\n

After years of giving them relatively free rein to help digitise the Chinese economy, regulators are now seeking to hobble dominant digital platforms.<\/p>\n

The moves echo a global pushback against the increasing clout of Big Tech that has Facebook<\/a>, Google and others also facing scrutiny at home and abroad.<\/p>\n

Alibaba has received particular attention after billionaire co-founder Jack Ma publicly criticised Chinese regulators in October for reining in a push into online lending, wealth management and insurance products by Alibaba’s online payments arm Ant Group.<\/p>\n

The government said it imposed the $2.78 billion fine on Alibaba for its practice of forbidding merchants who wish to sell their wares on its popular online marketplaces from simultaneously offering them on rival e-commerce sites, saying the company had “abused its dominant position in the market”.<\/p>\n

The Alibaba fine was a record and nearly three times the almost $1 billion levied by China against Qualcomm in 2015, Bloomberg reported earlier.<\/p>\n

Even before the fine, the regulatory crackdown had cost Ma and Ant Group dearly.<\/p>\n

A planned record-shattering $35 billion Hong Kong-Shanghai IPO by Ant Group, which would have added to Ma’s already massive wealth, was abruptly shelved.<\/p>\n

Ma subsequently disapp<\/a>eared from public view for weeks, and Ant Group was ordered by regulators to return to its roots as an online payment services provider.<\/p>\n

The government crackdown has weighed on Alibaba shares as well as those of other major Chinese tech players with fears swirling that they also might face further fines and restrictions.\n <\/p>\n\n

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China hits Alibaba with record $2.78bn fine for market abuses\n\t\t\t\t\t\t\t\t\t\t<\/p><\/div>\n

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\n \u00a9 2021 AFP\n <\/p>\n

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\n Citation<\/strong>:
\n Alibaba earnings down as China tech giants face turmoil (2021, August 3)
\n retrieved 3 August 2021
\n from https:\/\/techxplore.com\/news<\/a>\/2021-08-alibaba-china-tech-giants-turmoil.html\n <\/p>\n

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