Alibaba, Tencent Dip as China Bans Big Discounts on Group Buys Wang Hai | Lu Hanzhi Alibaba, Tencent Dip as China Bans Big Discounts on Group Buys
(Yicai Global) Dec. 23 Shares in tech giants Alibaba Group Holding and Tencent Holdings wobbled today as China’s regulators yesterday introduced a new slew of anti-monopoly regulations to prevent dominant internet platforms from undercutting the competition with substantial subsidies for bulk orders.
Hangzhou-based Alibaba’s stock price [HKG:9988] closed down 0.16 percent at HKD248.40 (USD32), while Shenzhen-based Tencent [HKG:0700] fell 0.26 percent to HKD571.
Big players in the country’s e-commerce sector have been upsetting the normal order of things and squeezing out smaller retailers by offering discounts on bulk-buy orders that go below the manufacturer’s price.