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China tries “new tactic” to control Alibaba and Tencent

Shares in Alibaba and Tencent rose on Friday despite reports that China’s government is working to acquire so-called ‘golden shares’ in units of both companies.

The plan could represent an alternative to the regulatory crackdown that has hit Chinese tech stocks hard in recent years and included fines for Alibaba and Tencent for failing to comply with disclosure laws.

State-owned investment funds acquired 1% stakes in two local Alibaba subsidiaries and appointed a board member to one of the units, the news agency said. Reutersciting business registration records.

The Chinese government is also considering acquiring a stake in one of Tencent’s main operating subsidiaries in China, the report said. Financial Timesciting people from the company who are well-informed on the matter.

Chinese authorities have already taken similar stakes in companies such as TikTok owner ByteDance and microblogging platform operator Weibo, allowing them to exert greater influence over content on social media and news platforms.

Source: CNN Brasil

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