Shares of Chinese Giants Tencent and Alibaba collapsed almost five percent after the draft rules for regulating certain actions on the Internet writes CNBC.
The State Regulatory Administration (SAMR) issued a draft rules aimed at combating unscrupulous competitions on the network. Internet platforms will oblige to open negative feedback and prohibit only positive.
Also, they can not directly redirect customers to their website while those browsing the product or service elsewhere. Operators will deprive the ability to collect data and algorithms for analyzing competing trade information. If the company turns out to be suspicious, SAMR will hold an independent audit of its actions. Public discussion of the document will last until September 15.
Shares of Tencent, the world’s largest publisher in the world, fell 4.14 percent to 435 Hong Kong dollars (4100 rubles). The ALIBABA Internet retailer shares fell by 4.77 percent to 171.8 Hong Kong dollars (1600 rubles).
In early August, Tencent faced the strongest drop in value after an article was published in the State Chinese newspaper the Economic Information Daily, where online games were called “spiritual opium”. The price of the company collapsed more than ten percent, having deprived it of almost 60 billion dollars of market capitalization. The state of chapter Tencent Ma Huatan has decreased by more than $ 14 billion.