Xi Jinping pivot fails to stop exodus by leading investors in China tech

Xi Jinping led a parade of officials this spring vowing to revive China’s economy, hoping to repair the damage wrought by years of Covid Zero and regulatory clampdowns.

Some of the world’s biggest investors are selling anyway. Two pioneering financiers of China’s private sector — and hence the country’s economic miracle — have signalled 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 Holdings for potential sale in Hong Kong, while news emerged that SoftBank Group is preparing to hasten its exit from Alibaba Group Holding Ltd. — 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. Tencent slid the most in over two months on Wednesday.