Analyst Note| Dan Baker |
The Chinese government announced a set of draft antitrust regulatory guidelines for Internet-based platform companies on Nov. 10. Alibaba, Tencent and JD in our coverage sold off 12%-17% in the following two days. This represents another wave of regulatory forces on the Chinese Internet giants in the past two years. Given its detailed framework with an extensive list of well-defined monopolistic practices, we believe this could be a strong signal of a regulatory tightening, especially coming right after the suspension of the Ant Group IPO. These guidelines come only 10 months after regulators proposed a revision to the master Antitrust Law to include Internet companies.