Profits at Softbank’s Vision Fund impacted by China crackdown

Softbank’s Vision Fund says its thesis that China is a ‘compelling economic opportunity’ remains unchanged.

SoftBank Group Corp’s Vision Fund unit on Tuesday posted a 236-billion yen ($2.14bn) profit in the first quarter after gains from listing portfolio companies were offset by falling shares in firms like e-retailer Coupang Inc. The Japanese conglomerate posted record annual profit in May with executives pointing to a further upside from Vision Fund investments such as Chinese ride-hailing firm Didi Global Inc and “Uber for trucks” startup Full Truck Alliance Co Ltd. Those companies listed in New York during the quarter but Chinese regulatory action has subsequently hammered valuations, underscoring SoftBank’s China risk even as the group seeks to reduce dependence on its largest asset, a stake in Chinese e-commerce giant Alibaba Group Holding Ltd.