More Trouble Brews For Alibaba, Tencent - Read How - Alibaba Gr Hldgs (NYSE:BABA), Tencent Holdings (OTC:TCEHY)

China's Tianjin city has asked municipally controlled companies to move their data from private sector operators like Alibaba Group Holding Ltd BABA, Tencent Holdings Ltd TCEHY, and Huawei Technologies Co Ltd, Reuters reports.
China's cabinet, the State Council, reportedly ordered the companies to relocate their data in a state-backed cloud system called "guoziyun," which translates as "state asset cloud" by September 30, 2022.
Tianjin is a city of 14 million people in the south of Beijing which has a provincial-level status. The move coincides with the country's intense crackdown on the companies' access to the massive trove of data, anticompetitive behavior, and overseas IPO restrictions.
The rules also forbid the companies from signing new contracts with third-party cloud platforms or continue cloud resource rental agreements.
More clarity is pending regarding the country's stance on the other provinces.
Price Action: BABA shares traded lower by 3.46% at $159.53, and TCEHY shares traded lower by 1.46% at $59.08 on the last check Friday.
Photo by Fooksou Lamimo via Wikimedia

More Trouble Brews For Alibaba, Tencent - Read How