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China Business News Tuesday (2021-03-16)


1. Tencent's stock loses USD 62 billion due to fintech regulations.

Tencent's shares fell in the last two days of trading over fears that financial regulators are now targeting Tencent. Just as Ant Group, Tencent will likely be forced to set up a financial holding company that includes its banking, insurance, and payment services. This will significantly reduce their fintech part's value, which is now valued around USD 105-120 billion. This move by the Chinese government against the unrestrained expansion of its tech giants is considered monumental in the worldwide financial markets.

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2. Baidu raises USD 2 billion for AI subsidiary Kunlun.

Chinese search engine giant Baidu announced that it had closed a funding round for its in-house artificial intelligence (AI) chip subsidiary Kunlun. Baidu's chip-making unit was valued at USD 2 billion, and the round was led by private equity firm Citic Private Equity Funds Management (CPE). Baidu wants to commercialize its chip design capabilities and hopes Kunlun will become a standalone company. Kunlun chips are mainly used in smart vehicles and cloud computing products.


3. China Mobile plans China Mainland IPO after US delisting.

China Mobile is considering listing their A shares on a Chinese stock exchange after recently experiencing a delisting in the United States. However, according to various sources, the listing plan is still at an early stage. Currently, China Mobile is only listed in Hong Kong. With this plan, they would follow rival China Telecom, which announced its listing plans in Shanghai last week.


4. 360 DigiTech releases mixed Q4 results.

360 DigiTech's total fourth-quarter net revenue was USD 515 million (YoY 39.0%), and the net income was USD 184.6 million (YoY 180.3%). The analysts' expectations were exceeded in terms of earnings, whereas revenue grew much slower than expected. 360 DigiTech is a NASDAQ listed company that provides standardized risk management services and other products to institutional financial institutions.


5. Evergrande's EV division partners with Tencentfor EV operating system.

The electric vehicle division of real estate developer Evergrande Group said it would set up a joint venture with technology giant Tencent to develop a smart vehicle operating system. The two parties will develop their respective capabilities in new energy vehicle research and development, manufacturing, artificial intelligence, Big Data, cloud computing, commuting, and other fields. Evergrande Group New Energy Vehicle raised USD 3.4 billion in a share sale in January to fund research and pay down debt.


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