Japan’s Softbank Group has reported a significant loss driven by the technology company crackdown the People’s Republic of China government has inflicted on PRC tech-oriented companies and Softbank’s heavy investments in those companies.
Masayoshi Son, Softbank’s CEO, now is saying
Our China risk is not so huge. It is within our control[.]
It is a time of severe trials for China’s high-tech stocks. We are right in the middle of a storm.
And, as paraphrased by The Wall Street Journal,
[T]here is only so much more damage turmoil in China can do.
Here’s a thought: Softbank could eliminate the risk altogether and prevent any further damage by divesting itself of all PRC-oriented holdings and no longer investing at all in PRC companies, whether tech or ditch digging or anything in between.