World

Chinese tech giants paid for charity

China’s largest tech companies have had to pay the price of backing the government’s course, which recently announced a policy of “shared prosperity.” Seven tech giants announcing charitable donations have faced plummeting stocks, writes Bloomberg

The most recent of China’s tech giants has announced donations to the Alibaba Group. The company on September 2 pledged to allocate $ 15.5 billion over the next five years to the development of small technology firms. After the announcement, the company’s shares on the New York Stock Exchange fell 0.7 percent to close at $ 172 a share, although the stock in Hong Kong was more expensive.

Pinduoduo saw the biggest decline in securities since the announcement of donations. In the trading session on March 18, they fell 5.1 percent to $ 142 per share. Lenovo shares lost 2.4 percent after the April 1 charity donation and traded at $ 1.4, while Meituan shares were down 1.7 percent on June 4 to $ 38.9.

Securities Xiaomi and Offcn Education did not suffer as much from the charity – they became cheaper by 0.5 percent and traded at $ 3.6 on July 19 and $ 5.1 on March 3, respectively.

In 2021, China’s billionaires donated a record $ 5 billion to the benefit of the country. The growth of financial aid can be correlated with the position of the President of the People’s Republic of China Xi Jinping, who speaks about the importance of “common prosperity” – reducing the difference in wealth between the rich and the poor.

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