Chinese leader Xi Jinping led a parade of officials this spring vowing to revive China¡¯s economy, hoping to repair the damage wrought by years of ¡°zero-COVID¡± and regulatory clampdowns. Some of the world¡¯s biggest investors are selling anyway.
Two pioneering financiers of China¡¯s private sector ¡ª and hence the country¡¯s economic miracle ¡ª have signaled in recent days their intentions to continue pulling back from marquee investments in the country. European internet powerhouse Prosus registered more than $4 billion of stock in Tencent for potential sale in Hong Kong, while news emerged that SoftBank is preparing to hasten its exit from Alibaba ¡ª the e-commerce leader that made Masayoshi Son¡¯s name.
The moves accelerate the unwinding of some of the most lucrative bets in business history. While both Prosus and SoftBank declared their over-arching plans last year and are acting partly due to reasons outside their China outlook, the latest steps have dented investor optimism over a litany of recent promises from Beijing to welcome foreign capital and loosen its grip on the tech sector.
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