China Big Tech’s Charitable Donations Are Hurting Their Stocks
- Stocks of key firms have fallen after pledging money
- ‘It’s actual dollar going out of the door,’ Bocom says
This article is for subscribers only.
Chinese tech giants’ increasing charitable pledges may be contributing toward Xi Jinping’s “common prosperity” vision, but they have also been costing investors.
Stocks of all seven listed companies giving details of donations and pledges for various causes this year were sold off in the trading session following those moves, according to Bloomberg compiled data, which don’t include pledging announcements that were clubbed with earnings releases.