It comes after Alibaba and Tencent posted a set of second-quarter results that confirmed these once free-wheeling and high-flying behemoths are not growing anymore.

China’s biggest e-commerce player Alibaba reported flat growth for the first time ever for its April to June quarter. On Wednesday, gaming and social media giant Tencent posted its first-ever quarterly year-on-year revenue decline.

Alibaba and Tencent have felt the effects of a Covid-induced economic slowdown in China that is hitting everything from consumer spending to advertising budgets. The tightening of domestic technology regulation in areas from antitrust to gaming over the last year and a half is also weighing on results.

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