Xi's Mixed Messages Leave Whiplashed Investors Wary Of China
Mint Mumbai|January 04, 2024
President Xi Jinping spent last year trying to woo foreign capital while continuing to reshape China's business environment to ensure his power can't be challenged at home or abroad. Those sometimes-conflicting goals have left investors confused and put bureaucrats on edge.
Xi's Mixed Messages Leave Whiplashed Investors Wary Of China

His government's apparent backpedal this week is the latest example. Regulators. shocked gaming companies on 22 December with rules to cap in-game spending and prohibit mechanisms to incentivize more play time, in a bid to control a sector with growing sway over the nation's youth. That wiped $80 billion in market value off firms such as tech giant Tencent Holdings Ltd.

Then came a report that authorities had fired the top official at the country's gaming regulator and Beijing said it may review the controversial rules, suggesting a heightened sensitivity to offending markets. Tencent the operator of WeChat-recovered some of its gains, but remains down about 4% since the proposed curbs emerged. China's government hasn't commented publicly on the reported personnel changes.

The episode underscores the challenge facing Xi as he looks to both revive an economy struggling to arrest a slide in the property sector, while also strengthening national security as military and trade tensions rise with the US.

Companies have been caught in the middle, with executives hearing warm words from top officials only to then see authorities probe consultancy firms, expand a vague anti-spy law and restrict access to data.

Conversations with business leaders who have operations in China reveal that whiplash from Beijing's mixed messages on security and the economy are turning investors more cautious.

Esta historia es de la edición January 04, 2024 de Mint Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición January 04, 2024 de Mint Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE MINT MUMBAIVer todo
Transforming leaders of today and tomorrow for far-reaching changes that lie ahead
Mint Mumbai

Transforming leaders of today and tomorrow for far-reaching changes that lie ahead

Egon Zehnder works closely with Boards as well as leaders, helping them find their unique voice and uncover the potential they might not otherwise recognize

time-read
4 minutos  |
November 13, 2024
Mint Mumbai

Ex-Orios partners launch $75 mn fund

Anup Jain and Rajeev Suri, former managing partners of Orios Venture Partners, have launched a $75 million fund to back a mix of early and late-stage startups in fintech, climate and sustainability and consumer-driven B2C startups under their new investment vehicle—Blue Green Ventures.

time-read
1 min  |
November 13, 2024
NoBroker morphing into financial services company
Mint Mumbai

NoBroker morphing into financial services company

NoBroker gets a fourth of its over ₹600 crore revenue from its financial services business

time-read
3 minutos  |
November 13, 2024
Mint Mumbai

India in top 10 globally for patents, trademarks and industrial designs

India now ranks among the top 10 countries globally in the number of patents, trademarks and industrial design applications, according to the World Intellectual Property Organization's (WIPO) 2024 report on IP trends.

time-read
1 min  |
November 13, 2024
63 businesses find debt resolution in Q3
Mint Mumbai

63 businesses find debt resolution in Q3

In the eight years since IBC came into force, 1,068 companies have been pulled back from insolvency

time-read
2 minutos  |
November 13, 2024
Mint Mumbai

Centre asks states to list power utilities

Power minister Manohar Lal said ₹42 trillion of investments are required in the sector by 2030

time-read
1 min  |
November 13, 2024
Mint Mumbai

Goods exports in Q3 may hit $107.5 bn

India's merchandise exports are likely to rise 1.85% year-on-year to $107.5 billion in the third quarter of FY25, according to India Exim Bank.

time-read
1 min  |
November 13, 2024
NFRA board revises all audit norms despite ICAI dissent
Mint Mumbai

NFRA board revises all audit norms despite ICAI dissent

The matter of audit revision dates back to the 2009 Satyam Computers scandal

time-read
2 minutos  |
November 13, 2024
Mint Mumbai

India aims to lift air cargo to beat Red Sea bump

India's commerce ministry is pitching for air cargo to ship products such as pharmaceuticals, textiles, electronics and perishables that rely on swift delivery as disruption in the Red Sea trade route has increased freight costs, two people aware of the development said.

time-read
2 minutos  |
November 13, 2024
Zepto eyes $250 mn from HNIs, wealth cos at flat valuation
Mint Mumbai

Zepto eyes $250 mn from HNIs, wealth cos at flat valuation

Quick commerce startup Zepto is looking to raise about $250 million from high-net-worth individuals and wealth management firms, including Motilal Oswal, IIFL and InCred, at a near-flat valuation of $5 billion, three people familiar with the matter said.

time-read
2 minutos  |
November 13, 2024