SoftBank Group Corp. is a Japanese multinational conglomerate holding company headquartered in Minato, Tokyo, and focuses on investment management. The Group primarily invests in companies operating in the technology, energy, and financial sectors.
SoftBank has reported losses due to its investment in Chinese firms like Alibaba and DiDi Chuxing, the Chinese Ride-Sharing Giant, with a loss of approximately 22.35 billion yuan (about US$ 3.51 billion ) in the third quarter. Recently, China SenseTime has been included among the companies sanctioned by the United States, and SoftBank also holds nearly 15% of its shares.
Masayoshi Son, CEO of the Software Bank Group of Japan, Software Bank Group seems to be in the middle of the storm.
In November, Masayoshi Son announced a net loss of 397.9 billion yen (approximately 3.51 billion US$) in a single quarter from July to September, marking the first single-quarter loss in 18 months. The Vision Fund lost more than 10 billion US$ as a result.
SoftBank’s stock price fell 52.72%, from the highest of 10,695 yen (about US$ 95) to 5,057 yen (about US$ 45)
According to Forbes, Masayochi Son’s Net Worth in April 2021 was 45.4 Billion and in December 2021 Net Worth dropped down to 25.2 Billion.
Xie Jinhe pointed out that Sun Zhengyi—the founder of Softbank Group—has taken a wrong turn as Jack Ma quit Alibaba.
According to Xie Jinhe’s analysis:
Softbank’s Vision Fund has a big stake in these Chinese groups and has been affected since Alibaba’s share price plummeted 60% this year and Didi Chuxing’s stock price has fallen 66%.
In the past 20 years, he was like a money machine in Japan. Now it seems like he did not make money, and he also suffered tragic losses. So this is also the case. JInhe added that if he bet on China, especially Jack Ma, as this situation worsens, Sun Zhengyi will face a massive challenge.
During Xi’s anti-monopoly campaign, if NVIDIA is stuck, the future cash-out of Masayoshi Son and the turnover of his funds will face a lot of pressure.
SoftBank has invested extensively in China because of its speedy innovations in technology industries. However, the stability of this industry wasn’t taken into consideration until now.
For any foreign businesses, if they irritate the CCP, or simply get in Xi’s way, they will face huge obstacles.