#AceNewsReport – Aug.17: WangTouZhongWen (Beijing) Technology, which is owned by three Chinese state entities including a fund backed by China’s main internet watchdog, has a 1% stake in Beijing ByteDance Technology, according to shareholder data from the National Enterprise Credit Information Publicity System.
#AceSocialDesk says Beijing owns stakes in ByteDance, Weibo domestic entities, records show news of the stakes and the board seat was first reported by The Information on Monday. read more
Reuters August.17, 20214:57 AM BSTLast Updated 6 hours ago
It does not give not give the Chinese government any stake in the firm’s hit short video app TikTok, the source said. TikTok is not available in China.
The Chinese subsidiary “only relates to some of ByteDance’s China-market video and information platforms, and holds some of the licenses they require to operate under local law,” a ByteDance spokesperson told Reuters on Monday.
An affiliate, WangTouTongDa (Beijing) Technology, similarly holds a 1% stake in Beijing Weimeng Technology, Weibo’s main domestic subsidiary, according to a separate government data report and filings it made to the U.S. securities regulator.
Corporate information app Tianyancha said the ByteDance unit stake transfer was registered on April 30, 2021.
Although Chinese regulators have clamped down on a range of sectors, tech has come in for some of the harshest measures to date.
Regulators say they are concerned about issues ranging from its technology giants’ market power to their management of user data, and have launched antitrust probes, cancelled deals and published new guidance for the sector.
WangTouZhongWen (Beijing) Technology is co-owned by the China Internet Investment Fund, a China National Radio subsidiary and the Beijing Cultural Investment Development Group, its company registration filing showed.
The China Internet Investment Fund, which was established by the Cyberspace Administration of China and the country’s finance ministry, fully owns WangTouTongDa (Beijing) Technology.
Chinese tech stocks plummet as Beijing cracks down on online monopolies
17 Aug, 2021 12:00
China’s State Administration for Market Regulation (SAMR) has issued draft rules aimed at preventing unfair competition on the internet. The news triggered a selloff in Chinese listed technology stocks in Hong Kong.
The latest measure comes as part of Beijing’s broader crackdown on Chinese technology majors and covers multiple areas, including prohibitions on the way corporations are using data, and stamping out fake product reviews.
Shares in game development giant Tencent dropped 3.5% in late morning trading on Tuesday, while online retail giant Alibaba was down 2.5%.
SAMR is expected to hire third-party auditors to check whether the companies fall foul of the rules. The regulator is currently seeking public opinion on the new restrictions until September 15. It hasn’t set a date for when the regulations will come into effect if publicly approved: Chinese tech stocks suffer worst sell-off since global financial crisis as Beijing pledges to step up screening of US-listed firms
Earlier this year, the regulator released new anti-monopoly guidelines targeting internet platforms. The new rules have tightened the existing restrictions faced by the country’s tech giants.
SAMR has also taken legal actions against some Chinese technology corporations, having issued hefty fines to Alibaba Group and Tencent Holdings. The regulator blocked Tencent’s plan to merge video game streaming sites Huya and DouYu over antitrust concerns. It has also initiated a probe into food delivery firm Meituan for “suspected monopolistic practices.”
SEC Warns US Investors About Risks Of Buying Chinese Stocks As Crackdown In Beijing Continues
Zero HedgeAugust 17, 2021A few weeks ago, the SEC quietly shut down the processing of any new Chinese IPOs, which seemed almost comical to us, considering any underwriter would probably have trouble lining up the financing since there’s approximately zero appetite for new Chinese listings in the post-DIDI world. And not because of what’s happening on the American side, but due to the mounting political risks in China.
But let’s set all that aside for a moment. Early Tuesday morning, SEC Chairman Gary Gensler released a new “Office Hours” clips where he not only confirmed that the SEC had, in fact, shut down processing of any new potential Chinese listings, but he also explained to American investors exactly what it is they’re owning when they buy shares in Chinese listings.
#AceNewsDesk report ……Published: Aug.17: 2021: Reporting by Brenda Goh in Shanghai, Yingzhi Yang in Beijing and Echo Wang in New York; Editing by Gerry Doyle
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