SoftBank will significantly cut back on new investments in China due to regulatory uncertainty, Chairman and CEO Masayoshi Son said on Tuesday, after a crackdown by Beijing dented the valuation of its investments, reported Caixin.
The retreat of SoftBank marks the loss of one of the most aggressive tech investors in China and signals a correction in startup valuations there. The Japanese company has poured billions of dollars into some of the country’s biggest tech companies, including Didi Global, ByteDance and Alibaba Group Holding.
“I strongly believe that China’s AI technology and business model will continue to innovate,” Son said in a news conference. “However, in investment activities, various new regulations have begun, so I want to wait and see what kind of regulations are implemented and what kind of impact they have on the stock market.”