1
00:00:00,120 --> 00:00:02,720
Speaker 1: Let's get to Hong Kong to take a closer look

2
00:00:02,759 --> 00:00:05,240
Speaker 1: at this story, first featured by the Wall Street Journal.

3
00:00:05,240 --> 00:00:08,880
Speaker 1: Authorities in China are expected to find d D global

4
00:00:08,920 --> 00:00:11,960
Speaker 1: more than a billion dollars. Reuters is now reporting a

5
00:00:12,000 --> 00:00:16,000
Speaker 1: similar account the charge with cap Aijing's year long probe

6
00:00:16,079 --> 00:00:18,239
Speaker 1: into the right hailing giant. We're going to take a

7
00:00:18,280 --> 00:00:21,560
Speaker 1: closer look with our own Edwin Chan. He is Bloomberg's

8
00:00:21,600 --> 00:00:23,919
Speaker 1: Asia tech team leader, joining us from our studio in

9
00:00:24,000 --> 00:00:26,560
Speaker 1: Hong Kong. Edwin, thanks for being with us. So d

10
00:00:26,720 --> 00:00:29,680
Speaker 1: D pays a billion dollars, which seems like a lot.

11
00:00:29,760 --> 00:00:31,880
Speaker 1: What's next is the worst of the crackdown for d

12
00:00:32,000 --> 00:00:36,600
Speaker 1: D over I think right the biggest question is right

13
00:00:36,600 --> 00:00:40,040
Speaker 1: now with events beyond and all of it, and it's

14
00:00:40,080 --> 00:00:42,320
Speaker 1: not at all clear to me, at least based on

15
00:00:42,360 --> 00:00:45,239
Speaker 1: our reporting, that they're going to get away with just

16
00:00:45,320 --> 00:00:49,120
Speaker 1: a billion dollars in fines, which too many observers would

17
00:00:49,120 --> 00:00:52,040
Speaker 1: have been would be what amount to a slap on

18
00:00:52,120 --> 00:00:55,200
Speaker 1: the wrist. I mean, think back to a year ago

19
00:00:55,320 --> 00:01:00,320
Speaker 1: when when d D had it's much talented ip with

20
00:01:00,320 --> 00:01:02,880
Speaker 1: a lot of fanfare in New York and days later

21
00:01:03,760 --> 00:01:06,560
Speaker 1: the authorities came down on them like a ton of bricks.

22
00:01:06,840 --> 00:01:12,240
Speaker 1: And since then it's been kind of unrelenting um regulations

23
00:01:12,319 --> 00:01:19,160
Speaker 1: and restrictions and public censure, state media criticism. Uh you know.

24
00:01:19,280 --> 00:01:23,839
Speaker 1: They they had to remove their apps from stores and

25
00:01:24,520 --> 00:01:29,839
Speaker 1: potentially there was talk of uh quote unquote unprecedented penalties

26
00:01:30,200 --> 00:01:32,560
Speaker 1: and they were forced to delist. So right now they're

27
00:01:32,560 --> 00:01:35,440
Speaker 1: treating as a pink sheet in New York, which is

28
00:01:35,520 --> 00:01:41,960
Speaker 1: usually a market reserved for uh less solid companies. And

29
00:01:42,080 --> 00:01:45,320
Speaker 1: it's that that that their fate is kind of uncertain

30
00:01:45,440 --> 00:01:48,760
Speaker 1: right now whether they can even you know, make that

31
00:01:48,920 --> 00:01:52,560
Speaker 1: journey back to becoming a listed company again. So Beijing

32
00:01:52,600 --> 00:01:55,480
Speaker 1: has find other Chinese tech firms. I'm thinking Ali Baba

33
00:01:55,480 --> 00:01:58,040
Speaker 1: and I think the figure was around two point seven

34
00:01:58,120 --> 00:02:01,760
Speaker 1: five billion and the delivery and ma Chuan was find

35
00:02:01,800 --> 00:02:06,400
Speaker 1: about five million dollars as part of a crackdown. Is

36
00:02:06,440 --> 00:02:10,799
Speaker 1: there a formula that the antitrust regulator is using when

37
00:02:10,880 --> 00:02:15,880
Speaker 1: determining the amount of these fines. Yes, in most cases

38
00:02:16,000 --> 00:02:19,520
Speaker 1: there are anti trust guidelines where you are allowed to

39
00:02:19,560 --> 00:02:24,360
Speaker 1: find a certain percentage of say the previous year's domestic revenue.

40
00:02:24,400 --> 00:02:27,040
Speaker 1: So that was the formula formula very employed in Ali

41
00:02:27,080 --> 00:02:30,280
Speaker 1: Baba's case, for instance, which was a record find and

42
00:02:30,400 --> 00:02:33,560
Speaker 1: that was two point eight billion. Indeed, these case it's

43
00:02:33,639 --> 00:02:40,040
Speaker 1: less clear that the regulator overseeing this saga is a

44
00:02:40,160 --> 00:02:44,240
Speaker 1: very different one the cyberspace administration of China. And I again,

45
00:02:44,280 --> 00:02:47,920
Speaker 1: if you recall the events of a year ago, indeed,

46
00:02:47,919 --> 00:02:51,880
Speaker 1: these cases, it was wasn't only kind of an anti trust,

47
00:02:51,960 --> 00:02:57,960
Speaker 1: anti competitive issue. It basically was a very um systemic

48
00:02:58,080 --> 00:03:01,120
Speaker 1: data issue according to the SEA a C. And it

49
00:03:01,240 --> 00:03:05,640
Speaker 1: sparked a nationwide clamped down on data security as well

50
00:03:05,720 --> 00:03:10,000
Speaker 1: as freezing you know, a multibillion dollars some multi jillion

51
00:03:10,040 --> 00:03:14,120
Speaker 1: dollar I puor pipeline that still hasn't really resumed. So

52
00:03:14,240 --> 00:03:17,519
Speaker 1: if if you just look at those two cases side

53
00:03:17,520 --> 00:03:20,440
Speaker 1: by side, I there are there are many who would

54
00:03:20,480 --> 00:03:25,320
Speaker 1: say that d d's issue is of a different scale.

55
00:03:25,760 --> 00:03:27,840
Speaker 1: I shall we say, then Ali Baba is all meat

56
00:03:28,000 --> 00:03:30,080
Speaker 1: once Well, I think it goes without saying that there

57
00:03:30,200 --> 00:03:32,440
Speaker 1: was created a bit of a sigh of relief. I

58
00:03:32,480 --> 00:03:34,359
Speaker 1: think for d D investors, the a d R s

59
00:03:34,400 --> 00:03:37,080
Speaker 1: today in New York, we're up by more than Edwin.

60
00:03:37,120 --> 00:03:39,800
Speaker 1: Thanks for being with us and sharing your expertise. Edwin

61
00:03:39,920 --> 00:03:42,120
Speaker 1: Chann is Bloomberg Asian Tech team leader,