Japanese tech investor Softbank wants to keep investments in the People’s Republic from happening at the moment given the tighter regulations in China. “Until the situation becomes clearer, we will wait and see,” company boss Masayoshi Son said on Tuesday. In a year or two, the new rules would create a new situation.
Investments in China currently represent around a quarter of Softbank’s portfolio, which continues to include Chinese tech giant Alibaba. However, especially in China, company valuations have recently fallen due to tighter scrutiny, which is also affecting Softbank. In the fiscal first quarter of 2021/22 from April to June, Softbank’s net profit fell 39% to 762 billion yen, or about 5.9 billion euros. The Vision Funds, which are involved in many start-ups and listed companies around the world, are crucial to Softbank’s business. The stock market debut of Uber competitor Didi and truck start-up Full Truck Alliance provided momentum here, but they couldn’t offset the pressure on corporate valuations.