China's tech crackdown hit SoftBank like a 'big winter snowstorm'

New Delhi (CNN Business) SoftBank is stuck in a "big winter snowstorm," founder and CEO Masayoshi Son said Monday, after a sweeping tech crackdown in China battered some of the Japanese company's key investments.

SoftBank on Monday posted a loss of 397 billion yen ($3.5 billion) for the July-to-September quarter. Son said that the company's net asset value — which he says is a better indication of the firm's performance — fell by 6 trillion yen ($54.3 billion) to $187 billion.

The reason for the hit? "In one word: Alibaba," said Son, during an earnings presentation which he opened with a picture of a blizzard.

Alibaba was long the crown jewel of SoftBank's investment portfolio, and Son and Alibaba co-founder Jack Ma are close friends. The Japanese entrepreneur invested $20 million in Alibaba over 20 years ago, turning that bet into one that was worth $60 billion when Alibaba went public in 2014.

But Beijing's vast regulatory overhaul has weighed heavy on Alibaba and other Chinese firms over the past year. Alibaba was fined a record $2.8 billion after authorities accused the company of acting like a monopoly. And its financial affiliate — Ant Group — has been reined in by regulators after its IPO was called off at the last minute a year ago.