China reportedly acquires 'golden shares' in Alibaba, Tencent

EPA-EFE/WU HONG

The Chinese government recently bought a stake in Alibaba Group Holding Ltd. and is planning to do the same at Tencent Holdings Ltd., the Financial Times reported. People familiar with the matter claim China acquired "golden shares," which would give it the ability to outvote the other shareholders in some situations.

China's Cyberspace Administration took out a 1% share of an Alibaba subsidiary in order to "tighten control over content at the e-commerce giant’s streaming video unit Youku and web browser UCWeb," the report alleged. The government is still considering the plan to buy a stake in Tencent, with sources claiming it will also involve one of the company's subsidiaries.

Baha Breaking News (BBN) / DJ