<p>Shares in Alibaba slumped Friday upon the Chinese e-commerce giant's announcement it would invest 100 billion yuan ($15.5 billion) in charitable causes, after President Xi Jinping called for the rich to do more to tackle inequality.</p>.<p>Xi last month urged China's wealthiest companies and entrepreneurs to strengthen philanthropy efforts and "give back to society", in order to redistribute wealth as part of his "common prosperity" initiative.</p>.<p>In response Alibaba -- which has already fallen foul of Beijing's sharp scrutiny this year -- said it would put money into areas including tech innovation, small and medium-sized businesses, the welfare of gig-economy workers and healthcare equality.</p>.<p>Daniel Zhang, Alibaba chairman, said the group was "eager to do our part to support the realisation of common prosperity".</p>.<p>Shares in Alibaba slumped as much as 4 per cent on the news in Hong Kong trading on Friday, as traders worried about the potential impact on the company's bottom line.</p>.<p><strong><a href="https://www.deccanherald.com/business/chinas-alibaba-to-invest-155-billion-for-common-prosperity-1026199.html" target="_blank">Read | China's Alibaba to invest $15.5 billion for 'common prosperity'</a></strong></p>.<p>"The donation doesn't guarantee that there will not be more regulations to target at Alibaba," Castor Pang, head of research at Core Pacific Yamaichi International H.K. Ltd, told Bloomberg News.</p>.<p>"It's more or less affecting the whole tech sector sentiment today."</p>.<p>Chinese authorities have enforced a sweeping regulatory crackdown on the nation's tech sector after years of runaway growth. Alibaba was fined a record $2.75 billion in April and a bumper IPO of its fintech arm was scrapped at the last minute.</p>.<p>The crackdown has also widened to include online gaming, entertainment and education tech in recent months.</p>.<p>Many major tech firms have faced scrutiny over their treatment of gig-economy workers such as ride-hailing and delivery drivers, who often work long hours without protections such as social and medical insurance.</p>.<p>The earmarked 100 billion yuan is the equivalent of 31 per cent of Alibaba's current cash balance, according to Bloomberg Intelligence.</p>.<p>It is double what social media and gaming giant Tencent pledged last month to schemes dedicated to boosting low incomes, rural revitalisation and education equality.</p>.<p>Alibaba also said it would establish a 20 billion yuan development fund in its home province of Zhejiang, also the site of China's first "pilot zone" for common prosperity.</p>
<p>Shares in Alibaba slumped Friday upon the Chinese e-commerce giant's announcement it would invest 100 billion yuan ($15.5 billion) in charitable causes, after President Xi Jinping called for the rich to do more to tackle inequality.</p>.<p>Xi last month urged China's wealthiest companies and entrepreneurs to strengthen philanthropy efforts and "give back to society", in order to redistribute wealth as part of his "common prosperity" initiative.</p>.<p>In response Alibaba -- which has already fallen foul of Beijing's sharp scrutiny this year -- said it would put money into areas including tech innovation, small and medium-sized businesses, the welfare of gig-economy workers and healthcare equality.</p>.<p>Daniel Zhang, Alibaba chairman, said the group was "eager to do our part to support the realisation of common prosperity".</p>.<p>Shares in Alibaba slumped as much as 4 per cent on the news in Hong Kong trading on Friday, as traders worried about the potential impact on the company's bottom line.</p>.<p><strong><a href="https://www.deccanherald.com/business/chinas-alibaba-to-invest-155-billion-for-common-prosperity-1026199.html" target="_blank">Read | China's Alibaba to invest $15.5 billion for 'common prosperity'</a></strong></p>.<p>"The donation doesn't guarantee that there will not be more regulations to target at Alibaba," Castor Pang, head of research at Core Pacific Yamaichi International H.K. Ltd, told Bloomberg News.</p>.<p>"It's more or less affecting the whole tech sector sentiment today."</p>.<p>Chinese authorities have enforced a sweeping regulatory crackdown on the nation's tech sector after years of runaway growth. Alibaba was fined a record $2.75 billion in April and a bumper IPO of its fintech arm was scrapped at the last minute.</p>.<p>The crackdown has also widened to include online gaming, entertainment and education tech in recent months.</p>.<p>Many major tech firms have faced scrutiny over their treatment of gig-economy workers such as ride-hailing and delivery drivers, who often work long hours without protections such as social and medical insurance.</p>.<p>The earmarked 100 billion yuan is the equivalent of 31 per cent of Alibaba's current cash balance, according to Bloomberg Intelligence.</p>.<p>It is double what social media and gaming giant Tencent pledged last month to schemes dedicated to boosting low incomes, rural revitalisation and education equality.</p>.<p>Alibaba also said it would establish a 20 billion yuan development fund in its home province of Zhejiang, also the site of China's first "pilot zone" for common prosperity.</p>