News

China is taking small stakes in tech firms to tighten control over them

The Financial Times with the report, gated.

Reuters however have a brief summary, main points:

  • China is moving to take minority stakes with special rights in the local units of Alibaba Group Holding Ltd and Tencent Holdings Ltd, the Financial Times reported on Friday.
  • Seeking influence, Beijing began taking these stakes, called “golden shares,” in private online media companies – usually about 1% of a firm – more than five years ago.
  • These golden stakes are bought by government-backed funds or companies which gain a board seat and/or veto rights for key business decisions.

This article was written by Eamonn Sheridan at www.forexlive.com.