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China Business News (2021-04-21)

1. Tesla is under massive pressure from many sides in China

There has been an increase in the news on social networks recently against the malfunction of Tesla cars. This week, the Chinese state news agency Xinhua has published an article that Tesla's electric cars should meet market expectations and that Tesla should address user criticism (brakes not working and burning batteries). Also, the Political and Legal Affairs Commission of the Central Committee of the Communist Party of China has said that Tesla has not tried to find the cause of problems and improve the functions. The peak was an angry demonstrator protesting on the roof of a Tesla car at the Shanghai auto show as she nearly lost four of her family members because the brakes of her Tesla didn't work.


2. ByteDance sets itself up for entry into the music streaming market

ByteDance has set up another music division. As a result, the company has four music-related business groups responsible for different kinds of the music business. ByteDance is already partially active in this market abroad, and it seems only a matter of time before it enters the domestic music streaming market. The integration of a good music streaming service into TikTok could change the music industry. After the withdrawal of Mi Music, the music streaming market in China has been dominated by Tencent Music Entertainment and NetEase Music.


3. Anta Sports majority shareholder sells significant share stake

Majority shareholder Anta International has announced that they plan to sell 88 million shares (3.26% of the total issued shares) of the company at a discount price of HKD 131.48 per share. This volume of shares has a vote of HKD 1.5 billion. Anta Sports closed yesterday at HKD 142.2, which is why the price is a discount of about 7.5%. Anta Sports is a sportswear retailer based in China.


4. Despite trade war, the number of Chinese US IPOs is on the rise again

According to Deloitte China, a total of 20 Chinese companies went public in the US in the first quarter of this year. This is an increase of 233% compared to six in the same period last year. The total amount of financing was USD 4.37 billion, a year-on-year increase of 1081%. This is because there are very attractive Chinese technology companies, which are growing rapidly in China due to the effective epidemic control, making it easier for foreign investors to invest.


5. Alibaba with further investment in Turkish eCommerce platform

Alibaba has invested USD 350 million in Trendyol, a well-known Turkish online fashion retailer. With this further investment, Alibaba now holds 86.5% of the company's shares. The Turkish e-commerce market is highly fragmented with high competitive pressures, with Trendyol having already announced plans to soon expand into Europe, e.g., the UK, Italy, and Spain.


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