(Bloomberg) -- Chinese tech giants' increasing charitable pledges may be contributing toward Xi Jinping's “common prosperity” vision, but they have also been costing investors.
Stocks of all seven listed companies giving details of donations and pledges for various causes this year were sold off in the trading session following those moves, according to Bloomberg compiled data, which don't include pledging announcements that were clubbed with earnings releases.
Alibaba Group Holding Ltd. was the latest Chinese tech company to pledge $15.5 billion over five years on 10 initiatives encompassing technology investment and support for small companies, local media reported Thursday. Tencent Holdings Ltd. said last month it will double the money it's allocating for social responsibility programs to about $15 billion.
“It's actual dollar going out of the door,” Hao Hong, a chief strategist at Bocom International, said about Alibaba's move. “Just bear mind the volatility is going to stay here for some time.”
Chinese corporations and billionaires have pledged and directed more than $37 billion to charity so far this year through corporate interests, foundations or personal wealth, data compiled by Bloomberg show.
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