jack ma-own mobile payment giant Alipay was removed from a list of high-tech companies in Shanghai, Bloomberg reported.
What happened: Alipay.com failed to meet R&D spending requirements, according to a Sept. 8 government announcement reportsaid adding the distance could revoke certain tax benefits.
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The platform accounts for just a fraction of the parent company’s R&D spend Ant Group Co.which spent over 18.8 billion yuan ($2.6 billion) on research last year, the report said, citing a statement from the company.
That is remarkable alibaba group holding ltd BABA Fintech partner ant group has undergone a major restructuring to address concerns from the Chinese government, which botched its $37 billion plans to go public in late 2020. In June she was appointed Exchanges and clearing in Hong Kong chairman Laura Cha as an independent director.
Global investors had downgraded Ant’s valuation prior to the suspended IPO. Loyal Investments lowered its estimate for Ant from $78 billion in June 2021 to $70 billion at the end of May.
BlackRock, Inc BLACK reduced the value from $174 billion to $151 billion in March T. Rowe Price Group, Inc TROW reduced it from $189 billion in 2021 to $112 billion in May.
Influence: Corresponding Franz Chan, an analyst with Bloomberg Intelligence, the main impact for the company will be the loss of some tax benefits. “China is putting more emphasis on chip self-sufficiency in high-tech development,” Chan said, according to the report.
Price promotion: Alibaba shares traded 0.77% lower in Hong Kong on Thursday.
Continue reading: Alibaba, Nio, EV stocks fall: Wednesday’s Hang Seng rally is proving to be a farce as the index tracks the weaker close
