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SoftBank Vision Fund posts record $27 billion loss as tech stocks dive


Masayoshi Son (SoftBank founder) stated that there is confusion in the world and the markets because of a variety of factors, including Russia’s invasion Ukraine, high inflation rates and central bank actions to increase interest rate. SoftBank Vision Fund’s annual loss has been record-breaking due to all these factors.

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SoftBankIt reported Thursday a record loss at the Vision Fund investment unit. This was due to rising interest rates, and Beijing’s regulatory crackdown which has affected its China holdings.

Vision Fund, the Japanese superpower, reported a $2.7 billion loss in March of 3.5 trillion Japanese Yuan ($27.4 million). 31, which is the worst loss for the investment fund since it was established in 2017.

Vision Fund’s problems contributed to an unprecedented 1.7 trillion-yen annual loss for SoftBank. On Thursday, its shares were 8% less in Japan.

SoftBank Vision Fund is an investment fund that invests in stocks with high growth potential. It was created by Masayoshi son, founder of SoftBank.

Global markets are in chaos as investors compete with each other. rampant inflationThe U.S. Federal Reserve raising interest ratesInvestors have taken note. flee high growth tech stocks.

Russian War on Ukraine: The continuing Russian conflict and Chinese Resurgent of Covid-19. subsequent lockdownShanghai, the financial capital of China. fueled concerns over global growthThis added pressure puts additional pressure on the markets.

Son claimed during an earnings presentation on Thursday that these elements have created “confusion around the world” as well as in the markets according to an official translation.

South Korean ecommerce firm Coupang went public last year in the U.S. and has fallen nearly 60% in the past year. This was one reason for the Vision Fund’s loss. Singaporean ride-hailing giant GrabDelivery firm in the U.S. DoordashThese were some of the other poor performers.

SoftBank has also seen write-downs in the valuations of some private companies in which it invests.

Son indicated that as a consequence of headwinds, the company would go into “defense” mode. These will mean that new investment criteria will be stricter and new investments will move at a slower pace.

China investment falls

SoftBank is heavily exposed to China via its investment in the e-commerce giant AlibabaA ride-hailing service Didi.

The Beijing crackdown in the domestic technology sector has led to sharp declines in shares for both of these companies. data protectionTo antitrust

SoftBank’s last financial years are April 2021 and April 2021. Alibaba was slapped with a $2.8 billion antitrust fine. The shares have fallen by 31% over the past year.