A Citi Private Bank report noted that its ultra-rich clients fled from Alibaba – once amongst the favorite single stock picks – after reports emerged that it was being probed by Chinese authorities.
«A large number» of the bank’s ultra-wealthy clients reduced or completely cut holdings in the Chinese e-commerce giant following reports about investigations into monopolistic practices, according to Citi’s report.
China’s stock market previously attracted significant inflows from the American lender's wealthiest private clients in the second half of the year, Citi Private Bank’s Lab for Family Offices added in the report released yesterday.
The once budding tech sector is now under unprecedented scrutiny as the likes of Alibaba and Tencent face increasing regulatory pressures. The most notable move by Chinese authorities was the pullout of fintech firm Ant’s $35 billion IPO and its founder Jack Ma has since disappeared from the public spotlight.
