The regulatory crackdown on Chinese and generation stocks continues, and Beijing proceeds to announce incremental measures. What happened: China’s Ministry of Industry and Information Technology has issued an ultimatum to web corporations to avoid blocking links from others on their sites or disclosing themselves to regulatory action, Reuters reported. This would end what analysts call “walled gardens” from Chinese giants such as Tencent Holdings Limited (OTC: TCEHY) and Alibaba Group Holding Limited (NYSE: BABA). The latest announcement comes with the utmost wisdom of a series of restrictive regulatory measures the Chinese government has announced since it expired last year that have hurt businesses in sectors ranging from generation to schooling to genuine wealth. “Restricting general access to web links without a valid explanation why it affects the user experience, infringes users’ rights and disrupts the market order,” said Zhao Zhiguo, a spokesman for the ministry. Tencent, according to the report, banned users from sharing content from byteDance’s byteDance-owned Douyin short video app on Tencent’s WeChat and QQ instant messaging apps. Alibaba’s Taobao and Tmall e-commerce marketplaces allow the use of Tencent’s WeChat Pay payment service. Zhao did not consult any specific company, but said that “there is still a mismatch between some companies’ understanding of the link blocking factor and the movements that are requested of them. “ Related Link: Reasons Why Alibaba Shares Are an Immediate Purchase Why it matters: The Chinese government’s business stance has led to a sharp drop in the valuation of many of China’s companies. From a high of $319. 32 in late October, Alibaba’s shares lost nearly some of their value. The e-commerce giant was forced to suspend IPO plans for its money-generating company Ant Financial and was fined $2. 8 billion for alleged monopoly behavior. Financial has been invited to organize itself as a corporate banking holding company that will subject it to stricter capital regulations and regulations. It also emerged that regulators sought to dismantle Ant Group’s Alipay, the payment app with more than a billion users. BABA is worth the action: Alibaba’s shares were trading down 2. 68% at $163. 60 on Monday morning. Related link: Alibaba analysts say valuation is attractive despite first-quarter disappointment Photo courtesy of Alibaba. See about Benzinga Click here to view Benzinga’s transactions Former Alibaba Director Accused of Sexual Assault Avoids Prosecution, After 15 Days in Detention Alibaba to $500 Million in Chinese Government’s “Common Prosperity” Initiative © 2021 Benzinga. com. Benzinga offers investment advice All rights reserved.