--- title: "Tencent, Alibaba Steam Ahead After Shaking Off Regulatory Restraints" description: "Tencent and Alibaba have rebounded after facing regulatory scrutiny in China. The Chinese government has shown support for their overseas listings and funding needs, and the companies are increasing s" type: "news" locale: "en" url: "https://longbridge.com/en/news/203827081.md" published_at: "2024-05-10T02:24:33.000Z" --- # Tencent, Alibaba Steam Ahead After Shaking Off Regulatory Restraints > Tencent and Alibaba have rebounded after facing regulatory scrutiny in China. The Chinese government has shown support for their overseas listings and funding needs, and the companies are increasing share buybacks to boost shareholder returns. Despite penalties and fines, Tencent's revenue increased by 17% in the first half of 2022, while Alibaba reported a 33% year-over-year increase in net income in the second quarter. The regulatory environment in China is expected to continue evolving, and companies must remain adaptable. Tencent Holdings Ltd. and Alibaba Group Holding Ltd. are set to show how quickly they’ve recovered from a period of intense regulatory scrutiny in China. As the tech industry crackdown faded, the Chinese government has changed course and said it will support their overseas listings and funding needs. Tencent, Alibaba and JD.com Inc. are also stepping up share buybacks, urged by regulators to boost shareholder returns. The Chinese tech industry experienced a significant downturn in 2021 as regulatory authorities intensified their crackdown on monopolistic practices. Key players, including Tencent Holdings Ltd. and Alibaba Group Holding Ltd., faced penalties for non-compliance with anti-monopoly transaction disclosure laws (1). However, recent developments indicate that the regulatory environment may be softening, allowing these tech giants to rebound. In July 2022, China's State Administration for Market Regulation (SAMR) announced fines for multiple companies, including Alibaba and Tencent, for failing to report past merger activities (1). While these penalties marked a setback for these tech giants, they also served as a reminder of the evolving regulatory landscape in China. As the tech industry crackdown faded, the Chinese government signaled its support for the overseas listings and funding needs of Tencent, Alibaba, and JD.com Inc. (1). In addition, the companies are stepping up their share buyback programs, encouraged by regulators to boost shareholder returns (1). Tencent, which owns the popular social media platform WeChat and the video game platform Tencent Games, was fined a total of 12 times by SAMR for various infractions (1). However, these penalties have not deterred the company's growth. In the first half of 2022, Tencent's revenue increased by 17% year-over-year to RMB 223.4 billion ($32.6 billion) (2). Similarly, Alibaba, China's largest e-commerce company, has faced regulatory challenges in recent years. In 2020, the company was hit with a $2.8 billion fine for anti-competitive practices (1). However, Alibaba's financial performance remains strong. In the second quarter of 2022, the company reported net income of RMB 28.2 billion ($4.1 billion), a 33% year-over-year increase (3). The regulatory environment in China is expected to continue evolving in the coming years. While the government has signaled its support for the tech industry, companies must remain vigilant and adapt to changing regulations. As Tencent and Alibaba demonstrate, resilience and adaptability are key to navigating the complexities of the Chinese market. References: 1\. Qian, Q. (2022, July 13). Alibaba and Tencent Fined in China Tech Crackdown. Forbes. https://www.forbes.com/sites/qai/2022/07/13/alibaba-and-tencent-fined-in-china-tech-crackdown/?sh=30b9f38d644f 2\. Tencent. (2022). Tencent Reports Second Quarter 2022 Results. Tencent. https://ir.tencent.com/news/press-release/details/2022/Tencent\_Reports\_Second\_Quarter\_2022\_Results\_2022-07-20.html 3\. Alibaba Group. (2022). Alibaba Group Reports Second Quarter 2022 Results. Alibaba Group. https://www.alibabagroup.com/en/news/press/2022-07-20-alibaba-group-reports-second-quarter-2022-results ### Related Stocks - [BEH.SG - China](https://longbridge.com/en/quote/BEH.SG.md) - [TCEHY.US - Tencent](https://longbridge.com/en/quote/TCEHY.US.md) - [09988.HK - BABA-W](https://longbridge.com/en/quote/09988.HK.md) - [80700.HK - TENCENT-R](https://longbridge.com/en/quote/80700.HK.md) - [TCTZF.US - Tencent Holdings Limited](https://longbridge.com/en/quote/TCTZF.US.md) - [89988.HK - BABA-WR](https://longbridge.com/en/quote/89988.HK.md) - [BABA.US - Alibaba](https://longbridge.com/en/quote/BABA.US.md) - [00700.HK - TENCENT](https://longbridge.com/en/quote/00700.HK.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 恒指馬年首日跌 292 點 AI 股逆市炒上 智譜飆逾 42% MINIMAX 大升近 15%｜港股收市 | 港股在馬年首個交易日收跌 292 點，報 26413 點，成交額 1,653.73 億。科技股如騰訊、美團及阿里巴巴領跌，分別下跌 2%、1.5% 及 4.9%。然而，機器人及 AI 相關股逆市上漲，智譜大漲 42.7%，MINIMAX 升 | [Link](https://longbridge.com/en/news/276424324.md) | | 高瓴繼續重倉中概股，HHLR 四季度增持阿里巴巴、拼多多，減持網易、百度 | 高瓴 HHLR Advisors Ltd.在四季度增持了阿里巴巴、拼多多、iShares 比特幣和台積電，同時減持了網易、Bright Schol、富途控股、百度、滿幫和 Webull 等。該公司重倉拼多多、阿里巴巴和富途控股。市場有風險， | [Link](https://longbridge.com/en/news/276176972.md) | | 恒指半日跌 161 點 百度挫半成 AI 股飆 智譜、海致科技升 19%｜港股開市 | 港股在馬年首個交易日低開，恆指中午收市跌 161 點，報 26544 點，成交額 917.55 億元。科指跌 122 點，百度跌 5.66% 為表現最差藍籌，阿里巴巴、騰訊等也下跌。AI 股表現強勁，智譜、海致科技均升逾 19%。歷史數據顯 | [Link](https://longbridge.com/en/news/276410566.md) | | PNC 金融服務集團公司收購了阿里巴巴集團控股有限公司 3,223 股股票 $BABA | PNC 金融服務集團在第三季度將其在阿里巴巴集團的持股比例增加了 7.1%，額外購買了 3,223 股，總持股量達到 48,759 股，價值 870 萬美元。其他投資者也調整了在阿里巴巴的持倉。該股票開盤價為 155.91 美元，過去一年的 | [Link](https://longbridge.com/en/news/276318339.md) | | 阿里巴巴股票在第三季度財報發佈前的預測——以下是可以預期的內容 | 電子商務巨頭阿里巴巴（BABA）即將公佈 2026 財年第三季度的業績，分析師預計每股收益為 1.68 美元，收入為 420 億美元，同比增長 8%。該股票在 2025 年上漲超過 24%，主要受益於人工智能服務和雲計算的增長，但面臨來自競 | [Link](https://longbridge.com/en/news/276325421.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.