YEAR AND HERE TO
DISCUSS MORRIS HOWARD YOU LIKE
A PROFESSOR OF MANAGEMENT AND
INNOVATION AT IMD D
BUSINESS SCHOOL AND AUTHOR OF
LEAVE, THANKS SO MUCH FOR
JOINING US WHY IS CHINA TAKING
SUCH A TOP STANDS ON DATA
SECURITY AND WHY NOW.
>> WELL IF YOU'RE LOOKING AT
THE HISTORIC HIGH IPO OF
CHINESE FROM GOING
TO US AND STAYS IS ONE OF THE
CONCEPT BECAUSE ALL OF US AND
IN 2021. WE SEE THIS MASSIVE
WAY OFF PENDING APPROVAL COMING
TO YOU.
>> AND THEN THE SECOND THING IS
I THINK THE CHINESE GOVERNMENT
OR THE SUDDEN REALIZED A LOT OF
THESE COMPANIES OPERATED RIVER
THEY
TAKE INTENSIVE.
>> SO AS A WE
DON'T HAVE SOME KIND OF CONTROL
THE WAY THEY SEE IT THEY WILL
BE RUNNING
IN DANGER JUST LIKE THE
ESCALATION THAT YOUR POLITICS
KEEP ON COMING UP ON THE
CHINESE GOVERNMENT WANT TO HAVE
US READ IN TERMS OF
HOW TODAY THE STORE WHEN THIS
MONOPOLISTIC BEHAVIOR AND
ULTIMATELY IS MAKING SURE THEY
DO HAVE THE CONTROL OF THESE
CORPORATE DEVELOPMENT.
>> THAT BEING SAID THE STOCK
HAS BEEN HIT HARD IT'S DOWN
4.5% CURRENTLY AND IT'S DUE TO
THE
FACT THAT DIDI IS BANNED FROM
REGISTERING NEW USERS
DURING THIS TIME IS IT A
COINCIDENCE THAT CHINA IS
CHOOSING TO TIGHTEN THE
REGULATIONS AND CONDUCT
THIS INVESTIGATION. JUST DAYS
AFTER THE RIDE HAILING COMPANY
DEBUTED ITS IPO.
>> WELL THERE'S A LOT OF
SPECULATION GOING ON, BUT WE
SEE.
>> SEE THE MEDIA FACT IS THAT
THE STOCKS HAVE.
>> DOWN ALMOST CLOSE TO 25% BY
NOW I MEAN IS SEND A VERY
STRONG SIGNAL TO ALL OF THE
ENTIRE TECHNOLOGY SECTOR IN
CHINA THAT
NO MATTER HOW BIG YOU ARE THIS
NO ONE TOO BIG TO FAIL RATE IS
LIKE YOU KNOW IF YOU'RE NOT
COME APPLYING TO THE CHINESE
REGULATIONS AND THAT NO MATTER
HOW STRONG YOU I JUST
LIKE THAT AND WORKS COULD
POTENTIALLY GETTING THE RAIL
OFF TERRELL BEFORE WHY AND IF
YOU LOOKING AT THE DEED
THAT BUSINESS MODEL REALLY
COMES DOWN TO 2 THINGS ONE IS
THE COLLECTION
OF DATA. SECOND IS THE MONOPOLY
POSITION
US WELL. THE DEA UNDOUBTEDLY IS
THE SINGLE BIGGEST MONOPOLY IN
THE RYE HELD AN ECONOMY IN
CHINA. THE SMOOCH WITH HIS
RIVAL AND NOW IS THAT SHE
ALMOST LIKE AN NC DOUBLE
THE SESSION SO I THINK IS ELISE
DOES COME BUT NATION OF THE
FACT BOTH DAISY
AND CITY AS WELL AS SOME ON A
POLICE STATE
AND THE STORY OF THE CHINESE
GOVERNMENT TO DO SOMETHING
RATHER RADICALLY TO STRONG SEND
A VERY STRONG SIGNAL TO THE
BUSINESS COMMUNITY.
>> YEAH YOU TALK ABOUT
MONOPOLY, I BELIEVED HE
COMMANDS 90% OF THE RIDE
SHARING MARKET IN CHINA
ALTHOUGH THEY ARE IN 14 OTHER
COUNTRIES
I BELIEVE I DO WANT TO TALK
FLORIDA SENATOR MARCO RUBIO WHO
SAID IN PART IT WAS RECKLESS AN
ERA SPAHN SABAL TO HAVE DUTY
LIST ON THE NEW YORK
STOCK EXCHANGE. AND EVEN IF THE
STOCK REBOUNDS AMERICAN
INVESTORS STILL HAVE
NO INSIGHT INTO THE COMPANY'S
FINANCIAL STRENGTH BECAUSE THE
CHINESE COMMUNIST PARTY BLOCS
US REGULATORS FROM REVIEWING
THE BOOKS. WHAT IS YOUR
REACTION TO THAT IN THE END
DOES THAT MEAN A GREATER RISK
FOR
INVESTORS ALSO AND AD COMPANIES
ON THE STOCK EXCHANGE ARE
SUBJECT TO THE SAME REGULATIONS
AS EVERY OTHER PUBLIC COMPANY,
HOW DOES THAT COME INTO PLAY
HERE.
>> I MEAN IN THE END IT JUST
HIGHLIGHT DIFFERENT COUNTRY
REPRESENT DIFFERENT POLLING
COLE RISK IF YOU WANT TO
DIVERSIFY A PORTFOLIO SO ONE
COULD THINK
ABOUT WHY WE DON'T INVEST IN
YOU CAN INVEST IN SOUTHEAST
FROM MALAYSIA,
INDONESIA, LOT THE MOTION
MARKET EACH OF THESE MARKET
THAT'S RIGHT FOR SEND SOME KIND
OF UNIQUE
COUNTRY RISK. SO IT IS JUST A
MATTER OF FACT WHEN THEY SEIZED
2 SHOWING BASKET OR WE HAVE
INVESTORS NEEDS
TO BE CLEAR ABOUT THE FACT
HOWEVER I THINK ONE ELEMENT
THAT INVESTOR COULD PAY
ATTENTION TO IS THE HEIGHT
OF REGULATION AMONG CHINESE
COMPANY LOT THOSE WHICH SAW
THEIR HIGHEST EUGENIE AS A
RESULT OF INCURRING HIGH
POLITICAL RISK AND IF YOU
LOOKING AT.
>> THE HANDS AND ALIBABA TACT
JAI AND
>> WINNING A LAW DOMESTICALLY
BUT THAN NOT WE NAME
SUBSTANTIALLY ALL
MEANINGFULLY UPROAR THOSE IS
COMPANIES SUCH AS THE NOBLE
HIGHER ALL
WHILE WAY WE HEAR THESE
HOUSEHOLD NAME A LOT AND THEY
HAVE BEEN GENERATING
A LOT OF. WE'LL SAY IT WAS NO
ONE SEEMS TO BE ON THE FAVOR ON
THE CHINESE
GOVERNMENT SIDE. SO YOU CAN
ALMOST SEE WHEN AN
ORGANIZATION. THIS ROCK THE
DOMESTIC MARKET ALONG.
MEANWHILE THEY'RE NOT BRINGING
FOR IT. MY MONEY BACK TO HOME.
THEY ARE THE ONE WHO ACTUALLY
SUBJECT TO HIGH
POLITICAL RISK. SO YOU JUST
LIKE WHAT THE FINANCIAL
ANALYSIS. WE DID THAT I'D BE
WITH EXACTLY IF YOU CAN STEAL
ON POT ON THE ONE SITUATION YOU
CAN INVEST WATCH.
>> SO HOWARD HOW DO
YOU THINK THE UNRAVELING OF
THIS STORY IS GOING TO IMPACT
THE FUTURE OF DEBUTS ON THE
STOCK MARKET AND OTHER
EXCHANGES FOR CHINESE TECH
FIRMS YOU THINK OF A COMPANY
THE MAKER EX TOM.
>> YEAH SO I THINK GOING
FORWARD IS PROBABLY GOING HAVE
A COOLING
EFFECT RIGHT BECAUSE THIS IS A
REALLY STRONG CAUTION
THE READER HAIL THAT JUST
BECAUSE BUSINESS WISE YOUR
BLOOMING DOESN'T MEAN THAT YOU
BECOME YOU KNOW IN MEN'S THE
BILL NOW ON TV HOWEVER WE'VE
HEARD.
>> ABOUT YOU KNOW THE THE
SECOND THIS.
>> STAYING IN HONG KONG STOCK
EXCHANGE FOUGHT
BACK SAYING AND JUST LIKE X
THING IS ONE OF THESE NEW THE
MAKER HAVE GONE TO NEW YORK
STOCK EXCHANGE LISTED
LAST YEAR. I THINK YOU
NEED INDUSTRY TO ELECTRIC
VEHICLE IS SLIGHTLY DIFFERENT
BECAUSE IS NO ONE IS MONOPOLY
SO MANY COME INTO THE
EVENING MARKET AND SECOND
ELECTRIC PEOPLE COMPANIES SUCH
AS NEIL DAK SPENDING IN NORWAY
AND YOU WROTE THE WHY
IN ALL THE MAJOR PLAY HAPPENED
SELLING METRIC PROCESS AROUND
THE WORLD. SO THE MORE WE SEE
AND WILL THAT CUT KIND
HOUSEHOLD NAME I JUST MENTIONED
MIGHT BE KNOW-HOW AND HIGHER
AND WE SAMPLE LAST NIGHT, THE
WHOLE IDEA
SO I THINK FOR ME THE SECTOR
THE PROSPECT IS A SLIGHTLY
MORE POSITIVE. STILL THE
COOLING EFFECTS TO BE THERE.
>> DO YOU THINK THAT CHINESE
REGULATORS WILL ALSO IMPACT PRE
IPO FUNDING FOR A LOT OF THESE
COMPANY IN MAY BE REDUCING IT.
>> YEAH, I MEAN THE
FACT THAT.
>> ONCE THIS
POLITICAL UNCERTAINTY I MEAN IT
INVOLVED WHETHER IT IS YOU KNOW
THIS TO BE SHOT. I STARTED
CHANGE HONG KONG STOCK
EXCHANGE OVER OVERSEAS ABROAD
IT WOULD CAUSE A LONG SHADOW OF
A SHADOWY INTENSE
RECEPTIVE MISSED BY THE GENERAL
PUBLIC IS ALSO THE FOUNDING AND
THE REGULATION IS SLOW. WE'RE
SEEING IS THERE IS THIS THAT
THE GAY SHUN WHETHER THESE TECH
GIANTS HAVE FILE AND DISCLOSE
THAT
THEY HAVE PRIVACY AND THE USAGE
OF YOU
KNOW THEN APPROPRIATELY TO
DIRECT LATER SO THEY
GOING BACK TO START FALLING SO
WHICH ONLY NEEDS GOING FORWARD
IN
THE FUTURE. THE REQUIREMENT FOR
DISCLOSURE WOULD BE MUCH MORE
STRICTLY ENFORCED. AND SO OF
COURSE IT DOES CREATE BORN IN
FULL COMPANY GOING PAST IPO.