Lying low
At the same time, the Securities and Exchange Commission this month announced its final plan for a new law that mandates Chinese companies open their books to US scrutiny or risk being kicked off the New York Stock Exchange and Nasdaq within three years. That could mean hundreds of Chinese companies delisting from the US markets and relisting in Hong Kong or mainland China.
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“The best days for China’s tech sector are behind us for now,” said Chen Zhiwu, director of the Asia Global Institute at the University of Hong Kong. “Without access to American capital markets, the history of China’s tech sector would have been very different.”
ByteDance founder Zhang Yiming is a rare Chinese internet tycoon to see his fortune grow this year, gaining $US19.5 billion based on a valuation in a SoftBank filing this year. That’s partly due to his keeping the parent of TikTok a closely held company, insulated from the swings of market turbulence.
But Zhang has also strived to keep a low-profile during the regulatory crackdowns. In May, he announced he was stepping down as chief executive officer and then quit the board last month.
Many tech executives have made similar moves. Su Hua, co-founder of livestreaming app Kuaishou Technology, ceded the CEO role in November only nine months after the company’s IPO in Hong Kong. In September, JD.com named a new president, saying that Chairman Richard Liu will focus on long-term strategies.
Charitable donations
Even with the loss in personal wealth, some Chinese tech billionaires have upped their philanthropy in response to President Xi Jinping’s admonitions for “common prosperity” to address social inequality. Xiaomi’s Lei Jun and Meituan’s Wang Xing have donated stakes worth $US2.2 billion and $US2.3 billion, respectively, to charity, which has partly contributed to their dented fortunes.
Through the end of August, Chinese billionaires had donated at least $US5 billion to charity in 2021, 20 per cent more than total national giving the previous year, according to data compiled by Bloomberg News.
With iconic tech billionaires like Jack Ma receding from public prominence, the industry needs to reshape its core strategy for new growth in the future, HKU’s Chen said.
“I think good days will return at some point after some soul-searching and reassessment of what drove the golden days of the past two decades,” Chen said.
Bloomberg
