Tech Company Share Prices are Falling!
China has recently been cracking down against monopolies and internal anti-competition agreements.
Since late 2020, new regulations have been regularly enacted.
As a result, the share prices of Chinese tech giants such as Alibaba, JD and others have been falling sharply.
The Chinese State is taking action due to the high market shares occupied by a few large players.
While Alibaba’s held 56% of the e-commerce market in 2021, Meituan led the food delivery market with 67%, market share and DiDi, the ride-hailing market share with 85%.
The companies have taken advantage of their market leader positions; through monopolistic practices, users of the same app were sometimes offered different prices, “closed” platforms were created, and users’ personal user data were misused. The superiority of the apps meant that competitors had virtually no chance.
The two big China tech giants Alibaba and Tencent have since begun to open their walled gardens to each other.
Image Source: SCMP Research & Reporting
Want to have a first free consultation session about how to do marketing in China? Contact us.