Alibaba Antitrust Crisis Stirs Up Worries for Chinese Tech Future

29 December 2020

    Alibaba has led the second day of selling among China’s largest tech firms, driven by fears of antitrust scrutiny enveloping all powerful corporations in the country. 


    Alibaba, Tencent Holdings, Meituan and JD have shed nearly $200 billion in Hong Kong over the two sessions since Thursday, when regulators unveiled an investigation into their monopolistic practices. 


    “It is very hard to predict the outcome of the Chinese government’s ongoing investigation into Alibaba and other large consumer internet platforms”, says Baird analyst - Colin Sebastian. He has already cut his price target on Alibaba’s US-listed shares to $285 from $325 over “uncertainty around government oversight and potential for direct regulatory action in the coming year.”


    The company’s American depositary receipts closed comparatively unchanged Monday, following their 13% drop the previous session. Volume surged to several times the 12-month daily average as doubts over the future loomed. fell 3.4% and Tencent declined 3.5%. The day’s Hong Kong trading resulted in: Alibaba falling 8% Monday, shedding $270 billion of value since its October peak, while Tencent and Meituan falling over 6%.


    “The Chinese government is putting more pressure or wants to have more control on the tech firms. There is still very big selling pressure on firms like Alibaba, Tencent or Meituan. These companies have been growing at a pace deemed by Beijing as too fast and have scales that are too big”,  says Jackson Wong, asset management director at Amber Hill Capital Ltd.


    The question that worries markets most, however, is: are these big tech firms just the beginning?

    *The products advertised are only available to clients under Fondex Limited Seychelles (SDL No: SD037).


Cookies on Fondex

The Fondex website uses cookies to optimise user experience.

These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.

Manage Preferences

You can customize your selection of which cookies you want to accept.

  • Essential

    These cookies are necessary for the website to function correctly and cannot be switched off.

  • Functional

    Functional cookies allow the website to remember users' preferences and the choices you make on the website such as username, region, and language.

  • Marketing

    These cookies are used to track visitors across our websites and show you more relevant ads. Marketing cookies also include third-party cookies from partners. For more information relating to data protection & collection please view our Privacy Policy and Cookie Disclosure.


The Company would like to inform you that it will terminate its operations under the "Fondex" brand by 30th of December 2022. If you wish to open a trading account, kindly visit