Discussion

• @tracyalloway Tracy Alloway on x

  Billions wiped off of Chinese stocks (and ADRs) in recent weeks thanks to various crackdowns. We've had a crackdown on tech, education companies, and now warnings on food delivery platforms. Shares of Meituan down as much as 15%. https://www.bloomberg.com/... https://twitter.com/…

• @armchairdude Jonathan Wong on x

  It's funny that so much value in big tech companies depend on being able to take advantage of your workers. And when the government forces you to pay minimum wage and to respect worker's rights, your stock tanks. https://www.techmeme.com/...

• @lib_crusher Handball Enjoyer on x

  Turn up https://twitter.com/... https://twitter.com/...

• @saxena_puru Puru Saxena on x

  When it rains, it pours - https://www.bloomberg.com/... via @technology

• @davidinglestv David Ingles on x

  China posted notices that online food platforms must respect the rights of delivery staff and ensure that those workers earn at least the local minimum income. Meituan -14% https://www.bloomberg.com/...

• @benpatrickwill Ben Williamson on x

  “One education technology executive said: 'What are we supposed to do? We can't fight the Communist party.'” https://twitter.com/...

• @primroseriordan Primrose Riordan on x

  JPMorgan: “in our view, this makes these stocks virtually uninvestable.” On the wreckage facing foreign investors from China's overhaul of its $100bn private ed industry👇 https://www.ft.com/...

• @alex @alex on x

  tfw ur ipo is going well https://twitter.com/...

• @therealjoshye @therealjoshye on x

  Days after initiating the Didi probe, China's cyber space regulators turned to scrutinising Vision Fund-backed Full Truck Alliance, causing its US-listed shares to fall 43 per cent since the start of July.

• @therealjoshye @therealjoshye on x

  There are others. Keep, the country's most popular fitness app, recently withdrew plans for a US initial public offering, while online education start-up Zuoyebang could be hit by debilitating restrictions on the business model of the home tutoring sector.

• @therealjoshye @therealjoshye on x

  The Japanese group's heavy investment in China's tech sector, which makes up more than one-quarter of the Vision Fund's portfolio, has left it exposed to shifting regulatory winds in the country.

• @therealjoshye @therealjoshye on x

  Safe to say: Softbank is not happy. “The Vision Fund's 20.1 per cent stake in the taxi app, for which it paid $11.8bn in 2019, is now worth $7.8bn after Chinese regulatory pressure hit Didi's business prospects, cutting its market value almost in half.” https://www.ft.com/...

• @luluyilun Lulu Yilun Chen on x

  And the notice is out. Looks like an entire industry could be wiped out. Yuanfudao, zhangmen, zuoyebang, VIPkids, 51 talk, new orientalist, GSX, TAL... the list of companies affected goes on and on https://twitter.com/...

• @andrewbatson Andrew Batson on x

  Ultimately the business model of these tutoring companies is the monetization of status anxiety, a problem even more severe in China than in the US. The government may not be wrong to view this stuff as a waste of resources in a zero-sum game https://www.bloomberg.com/...

• @wolfiezhao Wolfie Zhao on x

  Amazed by the level of restrictions China has put on so many sectors over the past year. The sectors that can grow big in a free market - financial services, internet tech, crypto, real estate, and now education 🤦🏻‍♂ ️ https://twitter.com/...

• @willrocklin Will Rocklin on x

  @Techmeme Chinese bureaucrats need to smoke a joint and calm the heck down

• @davidinglestv David Ingles on x

  Just like that. China unveils sweeping overhaul of its $100 billion education tech sector. Companies that teach the school curriculum are banned from making profits, raising capital or going public. https://www.bloomberg.com/...

• @danmcohen Dan Cohen on x

  China's move to ban for-profit tutoring is interesting and important in relation to geogs of education, finance, and (maybe) decommodification: a short thread from an economic geography perspective: https://www.bloomberg.com/...

• @carnage4life Dare Obasanjo on x

  China upturns the apple cart in its edtech sector. Companies must now be non-profits, can't IPO, can't raise foreign capital, can't hire foreign teachers nor import textbooks. Basically the Chinese government doesn't think education should be capitalist. https://www.bloomberg.com…

• @guptpiy Piyush Gupta on x

  Desire to get ahead is innate in humans, doubt this works LT and a massive blow.. “Among others, they also ban the teaching of foreign curriculums, tighten scrutiny over the import of textbooks and forbid the hiring of foreign teachers outside of China” https://www.bloomberg.com/…

• @benpatrickwill Ben Williamson on x

  Really interesting tale of edtech markets, investment, and regulation playing out here. According to edtech market agency HolonIQ, global education stocks have “suffered a massive decline ... primarily driven by regulatory changes in China” this year... https://www.holoniq.com/..…

• @ngkabra Navin Kabra on x

  US free markets have resulted in crazy price increases in education related expenses (see chart). By contrast, China is outright banning profit-making in this sector. Who's right? https://www.bloombergquint.com/ ... https://twitter.com/...

• @luluyilun Lulu Yilun Chen on x

  The out-of-school education industry has been “severely hijacked by capital,” according to a separate article posted on the site of the Ministry of Education. “That broke the nature of education as welfare.” https://twitter.com/...

• @ruima @ruima on x

  What is China thinking when it comes to regulating its consumer internet companies? 2 main things: 1) must not go against national strategic objectives 2) sustainable / real profit or social benefit, not just capital gains Pretty simple.

• @ruima @ruima on x

  Real benefits over gains from playing games with capital: Monopolies are bad. Throwing capital at a sector to get to monopoly status is very bad (ie crazy subsidies). Using other shady methods also very bad.

• @ruima @ruima on x

  After school tutoring sector messed with both of these and was hit hardest. Others ie CGB just asked to stop market distorting subsidies. So ... don't freak out indiscriminately ... they're not the same.

• @ruima @ruima on x

  The reality of China is that it's not there yet, there are many low hanging fruits to be picked still just upgrading traditional businesses by single digits %s. Is it happening? Yes, is it way much slower than just throwing $ at anxious parents for AST? Yes. Get it now? 🙃

• @ruima @ruima on x

  National strategic objectives: Mitigate / solve demographic crisis Keep manufacturing onshore & continue to upgrade as this is a matter of national security Stable economic growth Basically, balance for long term over maximizing short term

• @noahpinion Noah Smith on x

  Why is China smashing its tech sector? Is it really about antitrust? I doubt it. I think it's because what we think of as “tech” is not the kind of tech China's leaders have decided they want. https://noahpinion.substack.com/ ...

• @aja_cortes @aja_cortes on x

  This is quite interesting https://twitter.com/...

• @prasannavishy Prasanna Viswanathan on x

  This piece is either offering post facto rationalisation on the ruthless purge of Chinese tech sector by Xi/Communists or is on the dot in finding a strategic coherence in Chinese game plan. Great read nevertheless https://twitter.com/...

• @noahpinion Noah Smith on x

  For years, we wondered if China would be able to build world-class internet companies. It did. Then it started to smash those companies. https://noahpinion.substack.com/ ...

• @mosharrafzaidi Mosharraf Zaidi on x

  Another absolute killer post from @Noahpinion -> Why is China 🇨🇳 smashing its tech industry? https://noahpinion.substack.com/ ...