Daily Briefing

Wednesday, 25 July 2018

China’s ‘big three’ telecoms operators look to ring in changes with blockchain tech – SCMP

What happened: China Mobile, China Unicom, and China Telecom, the country’s three large state-owned telecoms, have joined a research body called Trusted Blockchain initiative under the China Academy of Information and Communications Technology (CAICT). The companies will explore blockchain applications focusing on sharing data from their separate internet of things (IoT) networks and client identity verification.

Why it’s important: The Trusted Blockchain initiative has been active since April with over 200 companies participating including BAT. Blockchain has serious potential in telecoms and it’s not surprising that ZTE and Huawei are also involved in the project since they are the main developers of 5G technology in China. Tencent and China Mobile recently launched an ESIM card with blockchain-based authentication standards for IoT. – Masha Borak

陌陌大跌逾8% 做空机构此前称其股价将重挫三到五成 – Tencent Tech

What happened: Shares of Chinese online dating app Momo jumped 8% in an intraday trade, one month after Spruce Point Capital released a strong sell research opinion on Momo. The research accused Momo of concealing material disclosure from investors and warmed investors of challenges for Momo’s Live Video Segment.

Why it’s important: China’s live streaming market is becoming more and more competitive. Spruce Point Capital twitted after the market close on Monday that Douyin, being a major competitor of Momo, has poised threats to Momo’s video business. —Jiefei Liu

熊猫直播多方寻买手,要价超30亿人民币-iFeng

What happened: Panda TV (熊猫直播), the once game streaming upstart, is on sale at a market cap of RMB 3 billion.

Why it’s important: Founded by Wang Sicong, the only son of China’s second-richest man Wang Jianlin, Panda TV was among the most popular game streaming sites in China amid the country’s live streaming boom. But as the live streaming craze cools down, intensifying competition leaves little room for smaller players. Industry dominators like Huya and Douyu are seeking for IPOs.- Emma Lee

JD.com gets regulatory nod for 30 percent stake in Allianz China – Reuters

What happened: China’s state regulation department has approved JD.com’s RMB 483 million ($71.11 million) investment into global insurance giant Allianz’s Chinese affiliate Allianz China. It is reported that JD.com hopes to purchase 33% stake in Allianz China. Successful completion of the deal will make JD.com the second largest shareholder of the firm.

Why it’s important: Chinese tech giants are eyeing international strategic stake assets to build platforms for global operation and resource reception. By investing in Allianz China, JD.com is diversifying its current finance services, and establish potential affiliates to compete with rivals from other leading players such as Alibaba’s Ant Financial’s sides. – Runhua Zhao

涂鸦智能完成2亿美元C轮融资 加速智能商业生态落地 – Sina Tech

What happened: Tuya Smart, a Chinese developer of IoT and voice AI platforms, has raised $200 million in a Series C funding round. The investment was led by Austrailia’s Future Fund, with additional participation from NEA, China Broadband Capital, CICC Global Bridge Capital, and others.

Why it’s important: Tuya Smart was founded by a founding executive of AliYun. The Hangzhou-based startup currently offers IoT solutions for manufacturers, helping them transform their products into smart home appliances that can be controlled via its cloud platform. Although the IoT industry in China is flourishing, the smart home appliance market has huge untapped potential: only 5% of home appliances are actually “smart”. —Nicole Jao

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