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Alibaba’s shares have been under pressure for months amid scrutiny by Chinese regulators.
(Qilai Shen / Bloomberg)
Alibaba
the company’s listed shares in the U.S. fell similarly, as the Chinese Internet giant on Friday confirmed a large donation to social and economic programs in its home country.
Shares fell 3.5% in Hong Kong and Alibaba’s U.S. deposit receipts fell more than 1% in U.S. premature trade. The decline affected the technical index of Hang Seng, of which Alibaba is one of the most important components, which had a lower performance than Hang Seng, which fell 1.1%. Shares in Shanghai and Hong Kong were generally lower on Friday amid weak economic data releases.
The $ 100 billion ($ 15.5 billion) donation accounts for more than a third of Alibaba’s cash stack, according to the e-commerce company’s latest quarterly statements to June 30.
The company will invest money in Chinese initiatives in technological innovation, economic development, job creation, social care and the establishment of a “common prosperity” development fund, Alibaba said in a press release on Friday.
The news was first released on Thursday in support of Zhejiang State News, Reuters reported.
Also read: China’s regulators are moving fast and breaking things down. Technology investors should be vigilant.
“Alibaba is a beneficiary of strong social and economic progress in China over the past 22 years,” Daniel Zhang, chairman and chief executive of the group, said in a statement. “We look forward to doing our part to support the realization of common prosperity through high quality development.”
Alibaba is following in the footsteps of a Chinese technology partner
Tencent,
which has announced similarly sized donations to local initiatives this year. Technological platforms
Pinduoduo
and car manufacturer
Geely
recently they have also pledged to participate in a drive for common prosperity, as has the founder of the e-commerce group
Meituan.
“Common prosperity” is a hallmark of President Xi Jinping’s program of economic and social reforms in China to address wealth inequality.
Donations from Alibaba and its peers come as the groups come under intense control by Chinese regulators amid months of crackdown on the technology sector and beyond.
Alibaba received a record $ 2.75 million fine in April for violating China’s competition rules while launching its fintech Ant arm, which was billed as the largest IPO of all time. , was removed by regulators last November.