China has purchased 'golden shares' in tech companies Alibaba and Tencent in an effort to broaden its efforts to tighten supervision over online content, according to business registration data. Beijing began purchasing these 'golden shares' from independent digital news companies over five years ago. In most cases, China acquires special rights to 1% or less of a company.

Business registration records revealed that China has purchased minority holdings featuring special requests in two additional subsidiaries of digital giant Alibaba Group Holdings Ltd (9988. HK), as Beijing continues to push for tighter control over online content.

For further than five years, Beijing has taken 'golden shares' in privately held digital broadcast and media enterprises. In recent years, these agreements have expanded to include businesses with enormous data holdings.

The first investments made public by the e-commerce company were those made over the past four months in the Alibaba businesses. One of the most visible targets of China's major regulatory onslaught on tech companies has been Alibaba.

These 'golden shares,' which typically constitute 1% of a company, are purchased by funds or businesses with government backing in exchange for board seats and/or the ability to reject critical corporate decisions.

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Publicly available business registration records revealed that in September of last year, a state-owned Zhejiang Media Group investment vehicle purchased a 1% share in Shanghai-based Alibaba's Youku Television and Film division.

According to the records, Jin Jun, the chief operating officer of one of Zhejiang Media Group's companies, has also been named to the management of the Alibaba division.

A unit of the China Internet Investment Fund (CIIF), founded either by the Cyberspace Administration of China (CAC), WangTouSuiCheng (Beijing), was found to have acquired a 1% share in Guangzhou Lujiao, a subsidiary of Alibaba, in December, according to separate business registration data. The main goal of Guangzhou Lujiao is 'research and development.'

According to The Financial Times, which first reported on the WangTouSuiCheng investment on Friday, Beijing wants to tighten control over material at the e-commerce giant's streaming video arm Youku and web browser UCWeb.

Alibaba declined to respond to a query.

Unnamed sources informed The FT that talks to buy golden shares in gaming behemoth Tencent Holdings (0700. HK), which would comprise a stake in one of the group's main subsidiaries, were in progress. Tencent decided not to comment.

According to Reuters, other companies with these golden share plans include Full Truck Alliance Co (YMM.N), the mainland operations of TikTok owner ByteDance, Kuaishou Tech (1024. HK), and Weibo.

According to sources who spoke to Reuters, holding similar golden shares can benefit companies attempting to obtain licences to distribute independent content and to broadcast online video and audio programmes.