SoftBank Group will reduce its investments in Chinese startups pending greater regulatory clarity, company founder Masayoshi Son said on Tuesday.

“Until the situation becomes clearer, we want to wait and see,” Son said at a press conference, as reported. Reuters. “In a year or two, I think new rules will create a new situation. “

Chinese startups currently represent around 23% of the portfolio of its Vision Fund, SoftBank’s technology-focused venture capital fund that was founded in 2017. But since April, only 11% of new investments have been directed to China. , reflecting the company’s decision to downsize.

Nonetheless, SoftBank is quite exposed to China as a whole. Alibaba, the online shopping giant, accounts for 39% of its asset value, according to the Financial Times. Son noted that Softbank’s overall investment portfolio in China is still profitable.

Despite Beijing’s continued regulatory crackdown on private companies, from tech to educationSon said he remains optimistic about China’s long-term growth prospects.

The Japanese conglomerate reported a 39% year-over-year drop in net income on Tuesday.

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