China Goes After BYD, JD Is Doing Great
China is now going after EV maker and chip company, BYD, as the clampdown continues.
Chinese electric car maker BYD's plan to sell shares in its computer chip making unit has been suspended, the latest share offering to be hit by Beijing's crackdown on businesses. The listing has been put on hold due to a regulatory investigation into the law firm advising the company. The plan to list on Shenzen's Nasdaq style market ChiNext was filed in May. The suspension comes amid a broader regulatory tightening on industry by Chinese authorities.
Over the weekend, the Shenzen Stock Exchange said Beijing Tian Yuan Law Firm, one of China's biggest legal services companies, was being investigated in relation to the listing.
But while BYD bleeds, JD.com is doing just fine: "Executives at Chinese e-commerce company JD.com do not expect Beijing's crackdown on China's tech industry to hurt the company's business. JD.com added a record 32 million users during the latest quarter while profits exceeded analyst expectations. The Chinese government's intensified scrutiny of home-grown tech has come down particularly hard on JD.com rival, Alibaba, which was fined $2.5 million in April over anti-competitive concerns. " (Fortune)
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