Japanese giant SoftBank is set to tone down its investments with the drop in tech stocks and the ongoing crackdown in China, according to a report on FT.
Sources close to the matter said Founder Masayoshi Son instructed officials to slow down investments in a recent meeting, with its writedown estimated to hit $30 billion for the quarter.
Sources close to the group’s team in China said valuations for Chinese firms listed overseas have declined and that they do not expect a turnaround in the short term, and it is looking to raise cash.
SoftBank is also said to be weighing assets that could be liquidated, but the firm declined to comment on the matter. It already sold its stake in South Korean e-commerce firm Coupang earlier this month.
Son has availed of personal loans against his own stake in SoftBank, generating the collateral equivalent to a third of his holdings, with a source said he is “very concerned” given the increasing collateral.
Analysts believe SoftBank will be able to withstand the issues, given its $23 billion cash on hand.