News Update

Japan’s SoftBank plunged into losses after investing in China, know the big reason for this

• ByStartupStory     |    November 9, 2021

SoftBank said its investment portfolio called VisionFund suffered losses, including the value of its stake in South Korean online retailer Coupang. ButSoftBank earned shares in DotDash, an online food ordering service based in San Francisco.

New Delhi, Agency. Japan’s SoftBank Group Corp.After investing in China has gone into loss. It has caused the most damage in the July-September period,the Japanese technology group has informed. SoftBankreported that it lost 397.9 billion yen (USD 3.5billion) in the second quarter of the fiscal year,compared to a profit of 627 billion yen in the same period last year. Quarterly Sales percent increased to 1.5 trillion yen (US$13 billion). SoftBank said its investment portfolio called VisionFund suffered losses, including the value of its stake in South Korean online retailer Coupang.But SoftBank gained on shares in DoorDash, an online food-ordering service based in San Francisco.

SoftBank reported that the recent action in China in the technology sector has affected Chinese stock prices. Itschief executive Masayoshi Son reported that SoftBank’sVision Fund lost 1 trillion yen (USD 9 billion)in the July-September quarter. Sun, who founded the company, acknowledged that the recent losses were in stark contrast to the soaring results reported for the previous fiscal year. He said a big reason was the sharp drop in the share price of Chinese E-commerce company Alibaba, of which SoftBankis a shareholder. But he stressed that SoftBank’score business is shifting to Vision Fund and reducing its reliance on Alibaba’s performance.

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