Welcome to China Business News, NEO’s weekly roundup of top business developments as reported by news outlets in China and the region.
This week’s highlights:
- Kuaishou, a video sharing mobile app, officially entered the cloud video market with the release of its StreamLake brand, offering audio/video and AI solutions. At the release event, Kuaishou’s senior vice president and head of StreamLake announced that Kuaishou “recently produced a successful cloud-based intelligent video processing SoC chip for live, video-on-demand applications. The chip is used for live streaming and short video compression, which saves significant computing resources and bandwidth.” It’s worth noting that the chip itself is currently going through the testing stage and is yet to be put into mass production. Tech giants such as Alibaba, Tencent, Huawei, Jinshan and Baidu already occupy 60% of the current cloud video market. But StreamLake’s competitive edge lies in AI video technology that relies on large-scale data polishing. In addition, the technology is said to function smoothly on all kinds of cell phones. (Caixin)
- Under the influence of regulations and slowing growth, Chinese tech giant Tencent is in a critical stage of strategic adjustment, reassessing its external investments in light of the new market environment. The firm recently reduced its holdings in Huayi Brothers Media Corporation, a Chinese multinational entertainment company, by nearly 82 million shares. Film and TV companies are already a low-valued segment of A-shares, with risks intensifying due to the impact of the Covid-19 pandemic on offline movie theatres. Huayi Brothers’ performance is not optimistic, and its share prices have stumbled, currently hovering at a historical low of around 2.5 yuan/share, with the company’s market value at nearly 7 billion yuan. (Caixin)
- Huobi Group founder Li Lin is reportedly in talks with investors to sell his majority stake in the Firecoin crypto exchange at a valuation of up to $3 billion, in what could be the largest industry acquisition since the global cryptocurrency market began its $2 trillion plunge. The Chinese crypto pioneer has been in discussions to sell about 60% of the company he founded nearly a decade ago, according to people familiar with the matter. Existing investors, including Zenith Fund and Sequoia China, reportedly learned of Lin’s decision at a shareholder meeting in July. Sources said the deal could be completed as soon as the end of this month, with Lin seeking a valuation of between $2 – $3 billion. Lin founded Firecoin in 2013 and quickly transformed the startup into the world’s most active bitcoin exchange, charging zero transaction fees. Firecoin was once the world’s most active bitcoin trading platform, but in September last year Huobi Global issued an announcement that it had stopped registering new users in mainland China. Since then, it began its expansion into overseas markets such as Turkey and Brazil, where it had to compete with bigger rivals such as Binance and FTX. (Hexun Stock)