On the 11th, the news that Softbank, the major shareholder of Alibaba, would suspend new investment in China caused a sensation in the capital circle. In the evening, Softbank China capital gave the latest response to see what happened.
Softbank will suspend investment in China?
On the morning of the 11th, sun Zhengyi, chairman and President of Softbank group, said at a press conference: “before the situation becomes clearer, we want to wait and see what happens. In a year or two, I believe the new rules will create a new situation. ” Softbank also said it would observe how China’s rectification of the domestic science and technology industry will develop.
Softbank has previously invested in Internet giants such as didi travel, byte beat and Alibaba. This year’s antitrust regulation has brought huge changes to the share prices of these companies. Alibaba’s share price has fallen 14% since July. Seven departments previously jointly stationed in didi company to carry out network security review. This has also reduced the value of Softbank’s investment projects.
According to the Q1 financial report of fiscal year 2021 released by Softbank, the net profit in the first quarter was 761.5 billion yen, compared with 1.2557 trillion yen in the same period last year, a year-on-year decrease of 39%.
Navnit goville, chief financial officer of vision fund, said that although the crackdown affected the return expectation, “our overall view in China has not changed: This is still a huge, growing and eye-catching economic opportunity”.
Sun Zhengyi, President of Softbank group, said that although China will still be the innovation center of science and technology and artificial intelligence, “in terms of investment, we have noticed that many new regulatory measures have been introduced one after another. I want to wait a while to observe the regulatory type, scope and impact on the market.” Sun Zhengyi predicted that his “wait-and-see” period would reach one to two years.
On the evening of the 11th, Softbank China capital issued a statement through its official wechat, saying that it noted relevant media reports and would not comment on the investment strategy of Softbank group in China. Softbank China capital will continue to invest in excellent high-tech and high growth enterprises in China.