Why is China doing this to its companies? As we write, there is no single Chinese company anymore in the global 10. You may ask why is this Nigerian villager worried about China when his country has none in the top 100! Yet, understanding what is happening in China is extremely vital for us to understand the future of commerce in Africa because if China pauses their firms at home, I expect most of them to make Africa a growth destination. As I write, the largest financial institution in Nigeria, on market cap, at a valuation of $2 billion, is OPay which is controlled from Asia.
Tencent Holdings Ltd. has lost its place among the world’s 10 largest companies by market value, leaving no Chinese company in the list as Bejing’s regulatory crackdown continues to wreak havoc on the stock market.
Hong Kong-listed shares of the gaming and social media company fell 0.5% Thursday, valuing it at $556 billion. That’s just below U.S. chipmaker Nvidia Corp., data compiled by Bloomberg shows.
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This is the first time that a Chinese company isn’t among the world’s ten largest since 2017, the data show. Tencent’s unseating follows that of Alibaba Group Holding Ltd. earlier this year, as China’s tech behemoths face tougher rules on everything from monopolistic practices to data security and kids’ gaming hours.
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It’s a good development, I have learnt years ago that money is a global citizen, so if the the dollars that should have headed China starts heading for Africa, it won’t develop fever or get malnourished, the weather here is very good for the dollars, the land is fertile too.
China wants to reorganise its economic architecture, the valuations that thrill Wall Street guys don’t move Beijing anymore, it wants something different. When last did the Europe produce a great global company? But it knows how to write big fine.
If we are catching the dollars being destroyed in China over here, we will still go home happily after.