, Columnist
China’s Tech Growth Is Getting More Expensive
Investors need to reassess profit assumptions.
The tech giants are almost everywhere, but consumers are getting more expensive to reach.
Photographer: Anthony Kwan/BloombergThis article is for subscribers only.
China’s consumer growth is a key plank underpinning the investment thesis for many of the country’s big technology companies.
But the torrent of revenue from domestic customers is getting expensive, forcing the likes of Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Sina Corp. to pony up more cash just to keep the numbers humming along at the accustomed pace.