SoftBank hit by $10 bln Vision Fund loss

China has been cracking down on its tech giants, including e-commerce titan Alibaba.

Now the effects are being felt in Japan.

On Monday (November 8) SoftBank said it faced a $10 billion hit to the value of its mammoth Vision Fund, which invests in tech firms.

Chief Executive Masayoshi Son said the reason was simple:

"Alibaba shares sharply declined and the price of the Chinese stocks that Vision Fund has invested in fell. These are the two biggest factors that dragged down the value of our net asset value, or net profit."

Alibaba's stock valuation fell by around a third over second quarter.

SoftBank's stake in ride-hailing giant Didi declined in value from $12 billion to $7.5 billion.

The falls come as China takes steps to rein in its tech giants.

Son says that means winter is coming for SoftBank:

"What happened to SoftBank Group is that we are in the middle of a blizzard. It is a big storm. It is the first cold blast of winter."

It all drove SoftBank to a quarterly loss of $3.5 billion.

But Son remains undaunted, planning a multibillion dollar share buyback.

Analysts say the firm also has a robust portfolio of other investments, including Indian ride-hailing firm Ola.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting