Didi Slapped With Hefty $1.2 Billion Fine. How Was the Amount Determined?

The Chinese government announced an enormous fine of $1.2 billion on Didi but did not explain the methodologies behind the calculation Key Takeaways: China’s cybersecurity regulator imposed a big fine of $1.2 billion on Didi after closing a year-long investigation into the company, but how it arrived at the amount has raised concern in the market Analysts believe that the company needs to use internal resources and pay off the fine first before it can move on with its IPO plan in Hong Kong By Ken Lo Paying 8 billion…

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Full Truck Alliance Shifts Up a Gear on Regulatory Easing Reports

Trucking app operator’s shares have surged 32% over the last two trading days, even as it forecast Omicron disruptions could cause its business to contract in the second quarter Key Takeways: Full Truck Alliance shares are up 60% from a mid-March low, including a 32% gain since Friday, on reports that Beijing may ease its regulatory oversight of big tech companies Company is currently undergoing a data security review and said its business could contract in the second quarter due to Omicron-related disruptions By Doug Young When are mass disruptions…

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DiDi’s Delisting Plan Just the Start of a Tough Road Ahead

The company often called China’s Uber will convene a shareholder meeting on May 23 to vote on a plan to delist from New York less than a year after its IPO Key Takeaways: DiDi shareholders are likely to approve a plan to delist the company from New York since major investors who hold more than 45% of its shares are likely to vote in favor After an exit, the company must still find ways to comply with China’s Cybersecurity Law and find a way to become profitable to survive over…

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TuSimple Looks to Decouple From China. Others to Follow?

Autonomous truck technology company is reportedly looking to sell its China business for about $1 billion Key Takeaways: Autonomous truck company TuSimple is reportedly looking to spin off its China business, leaving its more advanced U.S. business as its main asset Such a spinoff could provide upside for company’s stock by significantly reducing U.S. national security concerns By Doug Young Spring may finally be coming for U.S.-China stocks, following a nearly yearlong winter, with the latest signals that Beijing and Washington securities regulators are moving closer to an agreement that…

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Gogox Trucks Ahead with Hong Kong IPO Despite Growing Headwinds

Truck services app has been approved for a Hong Kong listing, with plans to raise up to $500 million Key takeaways: Gogox has been approved to list in Hong Kong despite operating in the red for years and seeing no potential profits for at least the next two years Company derives lion’s share of its revenue from mainland China, but may be losing ground to a new rival operated by DiDi Global By Jony Ho Gogox Holdings Ltd. may be a massively money-losing online logistics platform, but that doesn’t mean…

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Employment Specialist Kanzhun Shows It’s Down, But Not Out, With First-Ever Profit

Company posts 174% revenue jump in second quarter, but warns an ongoing cybersecurity review is likely to continue through at least the end of September Key takeaways: Kanzhun has posted its first-ever quarterly profit, fueled by a 174% jump in revenue Company warns that a cybersecurity review and concurrent freeze on new user signups is affecting its business, and could last through at least the end of September By Doug Young The maiden quarterly earnings report from leading online jobs specialist Kanzhun Ltd. (BZ.US), best known in China for its…

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Adult Educator Jianzhi Defies Regulatory Storm With IPO Application

Profitable provider of educational content to universities and libraries files for New York listing to raise $50 million Key points: Jianzhi is different from most education companies to recently list due to its focus on adult education and the fact that it’s profitable Company could be valued in the $600 million to $800 million range due to its profitability and relatively low regulatory risk By Doug Young “Brave” is the first word that comes to mind to describe a newly filed IPO application from Jianzhi Education Technology Group Co. Ltd.…

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Medical Data Collector LinkDoc Could Face Cash Crunch After IPO Withdrawal

Oncology-focused information provider’s 12-month operating plan had included $200 million in IPO funds that it will no longer have Key points:  LinkDoc has indefinitely shelved its $211 million IPO, with no word on when or if it will eventually proceed Company had estimated IPO funds, combined with current cash and cash flow, would be enough to meet its needs for at least 12 months By Richard Barbarossa Chinese oncology-focused medical data firm LinkDoc Technology Ltd., which is backed by e-commerce giant Alibaba, was looking forward to marking a major milestone…

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China Shows Full Truck Alliance, Kanzhun Who’s Boss

Cyberspace authority’s probes into newly listed internet companies is aimed at making them think twice about U.S. IPOs     Key points: A new series of government cybersecurity probes is aimed at Chinese internet companies that have recently listed in the U.S. The probes are designed to make such companies think twice about making U.S. IPOs, but not to halt them By Doug Young Today we’ll take a deep dive into the subject everyone in China’s corporate realm is talking about, namely the newly announced government probes into logistics company Full…

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