Alibaba (9988.HK) scrapped the spinoff of its prized cloud computing business, blaming U.S. curbs on advanced chips.
The U-turn dashes market expectations of stability among technology companies after the end of Beijing’s years-long regulatory crackdown.
Add in so-so results from Alibaba’s main businesses, also reported on Thursday, and it is hard to see a silver lining in the dark clouds gathering over China’s technology sector.
The technology giant reported revenue of 224.8 billion yuan ($31 bln) in the three months to September, up 9% year-on-year, and in line with market estimates.
Alibaba posted a net profit attributable to shareholders of 27.7 billion yuan versus a net loss of 20.6 billion yuan, due to an increase in the value of its equity investments.
Persons:
Lisi Niesner, Daniel Zhang, Zhang, Alibaba, Francesco Guerrera, Thomas Shum
Organizations:
IFA, REUTERS, Rights, Reuters, HK, Thomson
Locations:
Berlin, Germany, Rights SINGAPORE, Hong Kong, U.S, China