China’s tech crackdown is causing more financial stress for companies around the globe. Tokyo’s SoftBank Group took a significant hit as China’s firm grip on internet companies resulted in an estimated loss of $54 billion for SoftBank in just three months.
A large portion of these losses is attributed to the e-commerce group Alibaba Group Holding Ltd. in which SoftBank owns a nearly one-quarter stake. Despite significant losses Masayoshi Son, former chairman of SoftBank, stated that “It is a time of severe trials for China’s high-tech stocks,” and “We are right in the middle of a storm.” However, Masayoshi Son does not appear to be as concerned as he stated “Our China risk is not so huge. It is within our control.”
There is a bright side for SoftBank as shares rose over 10% after the company stated that it would spend up to $8.8 billion to buy back 14.6% of its shares over the next year.
Source: Wall Street Journal
