U.S.-China Audit Deal Won’t Slow Hong Kong Dual Listing Train, Analysts Say

The landmark information-sharing agreement won’t dispel concerns over delistings of Chinese firms from New York until the deal is smoothly implemented Key Takeaways: Despite a landmark U.S.-China information-sharing agreement, some predict dual listings in New York and Hong Kong will remain the preferred choice for Chinese stocks UBS estimates Hong Kong Stock Exchange trading volume could rise up to 25% if all U.S.-traded Chinese stocks delist from New York and move to Hong Kong By Ken Lo The new information-sharing agreement between U.S. and China stock regulators was a welcome…

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Alibaba Eyes Hong Kong Primary Listing as Hedge to U.S. Delisting Threat

Primary listing in Hong Kong in addition to its New York listing could also make the e-commerce giant’s shares accessible to mainland China investors Key Takeaways: Alibaba said it expects the upgrade of its secondary Hong Kong listing to primary listing status to be complete by the end of 2022 The SEC has placed Alibaba on a list of Chinese firms facing potential delisting as the deadline nears for U.S.-listed Chinese firms to comply with American audit rules By Ken Lo Alibaba Group Holding Ltd. (BABA.US; 9988.HK) applied for a…

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FAST NEWS: Bilibili Bans Minors From Livestreaming During Summer Holiday

The latest: Bilibili Inc. (BILI.US; 9626.HK), a Chinese live video-sharing platform, said Saturday it has launched a two-month special campaign to regulate the online environment for minors in the summer of 2022, including banning minors under the age of 16 from participating in livestreaming and related rewards, as well as prohibiting minors from “irrationally” following celebrities. Looking up: As China’s leading livestreaming platform, Bilibili has been in the eye of the country’s regulatory storm and is now proactively cooperating with the official “cleaning the internet” policy to help avoid official intervention.…

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Fresh Fines for Tech Giants: Another Regulatory Storm or Just a Flurry?

Chinese tech titans including Alibaba, Tencent and Bilibili have been fined for failing to disclose M&A dealings, sparking market fears of a return to tough regulation Key Takeaways: The Chinese market regulation authority listed 28 M&A deals that it said broke disclosure rules, slapping fines on a host of tech companies such as Alibaba, Tencent and Bilibili But market analysts say the risk of a renewed clampdown on the tech sector is limited in the face of a slowing economy By Fai Pui Worries about regulatory risk have once again…

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Is Koolearn’s Stock Surge on Boom in Livestreaming Business Just a Blip?

Gamble by tuition platform to transform into a livestreaming e-commerce business appears to have paid off, with sales booming and shares climbing more than sixfold in a week Key Takeaways: The company’s unique bilingual sales pitches by its anchors have drawn millions to the platform, which topped livestream e-commerce rankings for days But share price rise may have been due to frothy investor speculation in mainland stocks, as opposed to a broad positive long-term view of company fundamentals By Molly Wen If the recent sudden reversal of fortunes for shares…

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Living in TikTok’s Shadow, Kuaishou Bleeds Red Ink and Cash

The short-video platform’s loss narrowed by 34% in the first quarter, as investors worry about how long its cash can last Key Takeaways: Kuaishou’s adjusted net loss narrowed in the first quarter, but its ad revenue came under pressure during China’s latest Covid containment measures The company’s user base is almost half as large as that for TikTok parent ByteDance, even though its operating revenue and gross profit are just one-third as big By Ken Lo  Shares of Kuaishou Technology (1024.HK) have come a long way since their trading debut in Hong Kong last…

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Mass Layoffs at ‘China’s Instagram’: Tough Times or Primping for IPO?

Xiaohongshu confirms cutting 9% of its staff amid similar layoffs at other big internet companies. But some suspect the move may be aimed at improving its financials for an IPO Key takeaways: Xiaohongshu’s recent major layoffs could reflect a tough advertising market, even as it framed the move as normal workforce turnover Others reportedly laying off large numbers of workers include top livestream gaming platforms Huya and DouYu, whose planned merger was nixed by regulators last year By Ken Lo China’s internet realm has become the land of massive layoffs…

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Zhihu in Quest to Be First Internet Firm with U.S., Hong Kong Primary Listings

The Q&A platform has applied for a second primary listing in Hong Kong, though reception for the deal has been tepid Key takeaways: Zhihu will make a second primary listing in Hong Kong alongside its current U.S. listing, aiming to ease U.S. regulatory pressure and reach more Chinese investors Lukewarm interest in the new Hong Kong offering suggests investors are concerned about the company’s growing losses By Jony Ho Another Chinese company is jumping on the dual-listing bandwagon to Hong Kong, this time by online Q&A platform Zhihu Inc. (ZH.US;…

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FAST NEWS: Gaming Stocks Jump After China Ends Licensing Freeze

The latest: After an eight-month halt in new video game approvals, China’s National Press and Publication Administration announced Monday that 45 local games have been approved for new licenses, including 39 mobile games. Looking up: The resumption of game approvals has been eagerly awaited by Chinese video game publishers, which expect that more games will be approved for release in the second half of the year. The new releases will help companies to replace their older titles that are losing popularity. Take Note: Games from companies such as Baidu (BIDU.US;…

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