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About

<h3>Find out what moves China tech with us. We round up what you need to know about the local venture scene every Thursday at 8:00 a.m. (GMT +8), covering major investment stories, MNC partnerships, noteworthy startups, industries with the most investments for the week, and more.</h3>
Here’s a preview of what you’ll receive in your inbox. Get the full picture by <a href="http://kr-asia.com/subscribe/" target="_blank" rel="nofollow noopener noreferrer" data-type="external">subscribing to China Venture Roundup</a>.
<h3>MNCs </h3>
Apple is forging a closer partnership with Taiwan Semiconductor Manufacturing Co. (TSMC) in hopes of reducing its reliance on Qualcomm. The company plans to have the Taiwanese chip titan make 5G iPhone modems from 2023 onward.
TSMC has been a vital partner for Apple has as it attempts to reduce its reliance on Qualcomm and gain more control over vital semiconductor components for several years. The Taiwanese tech titan is currently the sole producer of iPhone processors and M1 Mac processors and has hundreds of engineers stationed in Cupertino, California, to support Apple’s road map for chip development.
<h3>Going Public: IPOs</h3>
Chinese gaming giant NetEase’s music streaming platform, Cloud Village, has raised USD 422 million from its initial public offering in Hong Kong. Founded in 2013, Cloud Village is NetEase’s music streaming business. It generates most of its revenue through subscriptions, advertising, and virtual items such as digital albums sold on its platforms.
The company claims it has 185 million monthly active users. For the period of Q1 to Q3, NetEase’s revenue rose 51.5% year-on-year to RMB 5.1 billion (USD 799.6 million) in 2021. However, it is still suffering steep losses as it competes for market share with its biggest competitor, Tencent Music Entertainment (TME).
<h3>KrASIA News Picks</h3>
Huawei is moving deeper into the auto sector as it obtained land use rights in Southern China’s Dongguan City to construct a manufacturing plant for smart car components. This is the second time for Huawei to lease industrial land in the last two months.
After suffering severe financial loss after the Trump administration implemented “tech decoupling” policies in late 2019, Huawei has attempted to improve its weak business performance in the smartphone sector. This includes <a href="https://click.mailerlite.com/link/c/" target="_blank" rel="noopener noreferrer" data-link-id="818223617">spinning off its most lucrative arm</a>, Honor, and <a href="https://click.mailerlite.com/link/c/" target="_blank" rel="noopener noreferrer" data-link-id="818223626">licensing its phone designs</a> to third-party companies.
Will Huawei’s plan to establish a presence in <a href="https://kr-asia.com/huawei-prepares-to-build-new-smart-car-component-manufacturing-facility" target="_blank" rel="noopener noreferrer">car manufacturing</a> help turn things around?

Huawei cruises into the smart car sector | China Venture Roundup Volume 64

China

China Venture Roundup

Hi again. It’s Brady.
Today is Friday, so I’ll keep it light and easy.
Grab went public. It opened at above USD 13. Before noon (Eastern time), it had tanked nearly 16% and was trading at around USD 9.30. When markets closed, each share was worth USD 8.75, roughly 20.5% down.
For a company whose leadership bandies about talking points that reiterate their long-term commitment to the region, it looks like many shareholders don’t consider Grab’s promises to mean much to them, at least financially.
Grab operates in more than 400 cities. It is, by any metric, nowhere near being profitable, having racked up a USD 988 million net loss in Q3. That’s quite a bit of red in just three months.
Khamila watched the bell-ringing ceremony. You can read her recap <a href="https://kr-asia.com/grab-debuts-on-nasdaq-rings-opening-bell-in-singapore?utm_source=uptake&amp;utm_medium=email&amp;utm_campaign=daily" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://kr-asia.com/grab-debuts-on-nasdaq-rings-opening-bell-in-singapore?utm_source%3Duptake%26utm_medium%3Demail%26utm_campaign%3Ddaily&amp;source=gmail&amp;ust=1638582208921000&amp;usg=AOvVaw1ZIbTuwyf07qhstkUdsR5e">here</a>.
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<h3>Daily Roundup</h3>
Two ByteDance employees receive <a href="https://kr-asia.com/two-bytedance-employees-receive-prison-sentences-for-illegally-promoting-content-for-profit?utm_source=uptake&amp;utm_medium=email&amp;utm_campaign=daily" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://kr-asia.com/two-bytedance-employees-receive-prison-sentences-for-illegally-promoting-content-for-profit?utm_source%3Duptake%26utm_medium%3Demail%26utm_campaign%3Ddaily&amp;source=gmail&amp;ust=1638582208921000&amp;usg=AOvVaw1FWfeul82v7AclI1uuf_c4">prison sentences</a> for illegally promoting content for profit.
Uber <a href="https://kr-asia.com/uber-partners-with-meta-to-roll-out-cab-booking-service-on-whatsapp-in-india?utm_source=uptake&amp;utm_medium=email&amp;utm_campaign=daily" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://kr-asia.com/uber-partners-with-meta-to-roll-out-cab-booking-service-on-whatsapp-in-india?utm_source%3Duptake%26utm_medium%3Demail%26utm_campaign%3Ddaily&amp;source=gmail&amp;ust=1638582208921000&amp;usg=AOvVaw2f6eMjH-v4KKHvdaEznDvh">partners with Meta</a> to roll out cab-booking service on WhatsApp in India.
Here’s everything about <a href="https://kr-asia.com/everything-about-indias-unicorn-hunters-of-2021-krasia-year-in-review?utm_source=uptake&amp;utm_medium=email&amp;utm_campaign=daily" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://kr-asia.com/everything-about-indias-unicorn-hunters-of-2021-krasia-year-in-review?utm_source%3Duptake%26utm_medium%3Demail%26utm_campaign%3Ddaily&amp;source=gmail&amp;ust=1638582208921000&amp;usg=AOvVaw3YSC6SYqZLNJC6boWdvfvZ">India’s unicorn hunters</a> of 2021.
<a href="https://kr-asia.com/registration-opens-for-the-second-alibaba-cloud-x-krasia-global-startup-accelerator-indonesia-demo-day?utm_source=uptake&amp;utm_medium=email&amp;utm_campaign=daily" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://kr-asia.com/registration-opens-for-the-second-alibaba-cloud-x-krasia-global-startup-accelerator-indonesia-demo-day?utm_source%3Duptake%26utm_medium%3Demail%26utm_campaign%3Ddaily&amp;source=gmail&amp;ust=1638582208921000&amp;usg=AOvVaw2Ubbdd6tmqd8DAP6BRavGq">Registration opens</a> for the second Alibaba Cloud x KrASIA Global Startup Accelerator Indonesia Demo Day.
Suzuki wants to be the Tesla of <a href="https://kr-asia.com/suzuki-wants-to-be-the-tesla-of-connected-minicars?utm_source=uptake&amp;utm_medium=email&amp;utm_campaign=daily" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://kr-asia.com/suzuki-wants-to-be-the-tesla-of-connected-minicars?utm_source%3Duptake%26utm_medium%3Demail%26utm_campaign%3Ddaily&amp;source=gmail&amp;ust=1638582208921000&amp;usg=AOvVaw2M-fiIP8LxCeXp3aFoo6XJ">connected minicars</a>.

Daily Digest | Grab and GRAB

Newsletters

Israeli-founded ridesharing startup Via has raised USD 130 million in a round led by British global asset management group Janus Henderson. The latest round brings Via's equity value to USD 3.3 billion, the company <a href="https://ridewithvia.com/news/via-secures-130m-in-series-g-financing-at-3-3b-valuation/" target="_blank" rel="noreferrer noopener">announced</a> on Tuesday.
The round was also joined by funds and accounts managed by BlackRock, ION Crossover Partners, Koch Disruptive Technologies, and existing investor Exor.
Founded in 2012 by Daniel Ramot and Oren Shoval, Via seeks to redefine urban transportation with its digital ride-sharing platform. The company's mobile app connects multiple passengers traveling in the direction, allowing them to share a vehicle.
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The firm operates consumer-facing shuttles in Washington, DC, New York, and in other 70 cities in 20 countries worldwide. The firm also provides its software platform, named TransitTech, to transportation authorities, schools, and universities to allow them to deploy their own shuttles.
Via previously raised a <a href="https://nocamels.com/2020/03/israeli-transport-via-200m-public-mobility/" target="_blank" rel="noopener noreferrer">USD 200 million Series E round</a> at a USD 2.2 billion valuation in March 2020. In September 2020, Via <a href="https://nocamels.com/2020/10/via-tel-aviv-delivery-logistics-fleetonomy/">acquired</a> Fleetonomy, a developer of AI-based optimization solutions for fleets of autonomous vehicles. In May, the company also signed a USD 100 million deal to acquire US firm Remix, a developer of collaborative mapping software for transportation planning.
The demand for software that can transform transportation systems into advanced digital networks has been increasing rapidly worldwide. As a result, Via has been experiencing strong growth, with revenues from TransitTech more than doubling year on year to exceed an annual run rate of USD 100 million, the company announced.
“This is the most exciting time in transportation in decades,” Daniel Ramot and Shoval, co-founders of Via, said in the announcement. “Cities around the world are recognizing the critical role that technology can play in improving the efficiency and quality of their transit networks. Our software provides an end-to-end solution that helps cities and public agencies plan, operate, and optimize every facet of their transportation system.”
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“When we look at the public transit market today, we see tremendous opportunity,” said Denny Fish, portfolio manager at Janus Henderson. “We’ve seen time and time again how traditional industries are transformed by the introduction of technology: fintech, health tech, edtech, and others have driven extraordinary improvements in performance and efficiency. The transitech sector is next, and Via is uniquely positioned to lead it. The company’s mission to expand access to efficient, affordable, and sustainable transportation is inspiring.”
The article was originally published by <a href="https://nocamels.com/2021/12/israel-transport-ride-via/" target="_blank" rel="nofollow noopener noreferrer" data-type="external">NoCamels</a>, a leading news website covering breakthrough innovation from Israel for a global audience.

Israeli-founded transport startup Via raises USD 130 million

Mobility

Douban, a popular online community that hosts content related to celebrity gossip and entertainment in China, has been fined 20 times this year for publishing content deemed "harmful" or "unhealthy" by regulators.
In a latest crackdown on Thursday, the Cyberspace Administration of China (CAC) slapped Douban with an RMB 1.5 million (USD 192,500) fine for “unlawful information” published on its app, a move dovetailing with a sweeping crackdown on the country’s online fan clubs. The cumulative financial penalty for Douban since the beginning of the year has reached RMB 9 million (USD 1.41 million).
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The CAC on Wednesday summoned the principals of Douban. The CAC did not specify the reason for their meeting or the fine, but demanded Douban to perform “immediate rectification” on the matter.
In response, Douban suspended its reply function from Thursday, December 2, to December 17. The company said it will strengthen efforts to censor content during this period, in order to comply with the CAC’s order.
Douban became a target of regulators’ ongoing crackdown on fandom culture as its users often gossip about Chinese celebrities in online interest groups. The Cyberspace Administration of China issued a notice in August that said it will tighten scrutiny on the country’s “<a href="https://kr-asia.com/chinese-social-media-platform-douban-suspends-reply-function-while-regulators-scrutinize-fan-culture" target="_blank" rel="noopener noreferrer">chaotic fan culture</a>.”
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Soon after the notice, Douban disabled its reply function, and required a number of fan groups on the platform to rename their communities to indicate a change in attitude toward celebrity culture and fandoms. Several groups were ordered to remove words such as “gossip” and “scoop” from their names.
Douban is also popular with online feminist groups. In April, however, the company shut down ten feminist groups, which had more than 1 million members in total. The company said these banned groups were promoting extreme and radical political views and ideological content.

Douban repeatedly slapped with fines for failing to censor content

Entertainment

Content

In a move that will intensify competition in the fast-moving quick commerce space in India, food delivery giant Swiggy will invest USD 700 million in express grocery delivery service Instamart.
Quick commerce—wherein companies pledge to deliver goods within 45 minutes after an order is placed—has been on the rise in the South Asian nation since 2020, on the back of wide adoption of internet-based services and millions of urban millennials willing to pay a premium for convenience.
The Bengaluru-headquartered company launched Instamart in Bengaluru and Gurugram in mid 2020 to deliver high-demand grocery and household goods to customers within 45 minutes. The service, which is currently present in 18 cities, clocks more than 1 million orders per week, Swiggy said in a statement on Thursday.
With the capital infusion, the company is planning to bring down the delivery time to 15 minutes to match rivals—Zomato-backed Grofers, Google-backed hyperlocal services platform Dunzo, and new entrant Zepto, all of which promise to deliver goods in within 20 minutes.
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E-grocery firm Grofers, which raised over USD 100 million from Zomato in June 2021, aims to have 350 dark stores or delivery-only retail outlets by the end of 2021, a significant buildout from November's 200, in order to make deliveries within 10 minutes.
Meanwhile, Dunzo is in process of setting up 300 micro-fulfillment centers to ensure delivery in under 19 minutes. Quick commerce startup Zepto, which was founded earlier this year and promises 10-minute deliveries, recently raised USD 60 million in its first round of funding at a post-money valuation of USD 225 million.
"In the last few months, Swiggy Instamart has onboarded more than one seller-run dark store every day," Swiggy said. "By January 2022, it will make deliveries in 15 minutes by having the network of dark stores very close to the majority of its customers."
The development comes at a time when Tata-owned BigBasket—the <a href="https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/grofers-zomato-and-the-big-online-grocery-battle/articleshow/83967806.cms?val=3728&amp;from=mdr" target="_blank" rel="noopener noreferrer">category leader</a> in the country's e-grocery segment—is reportedly looking to <a href="https://economictimes.indiatimes.com/tech/startups/bigbasket-jumps-into-buzzy-quick-delivery-segment-will-bring-all-grocery-services-in-one-app/articleshow/87896466.cms" target="_blank" rel="noopener noreferrer">launch an express delivery service</a>, BB Now, which will take groceries to customers' doorsteps in 10–20 minutes, this month. Interestingly, cab-hailing giant Ola is also reported to have <a href="https://www.livemint.com/companies/news/ola-begins-pilot-of-quick-grocery-delivery-service-in-bengaluru-report-11636109183557.html" target="_blank" rel="noopener noreferrer">begun piloting a quick delivery service</a> for grocery items from around 15 dark stores across Mumbai and Bangalore last month.
According to a recent report by Bengaluru-based consulting and research firm RedSeer, the value of India’s quick commerce sector is set to reach USD 300 million by the end of this year and <a href="https://kr-asia.com/indias-quick-commerce-market-to-reach-usd-5-billion-by-2025-report-says" target="_blank" rel="noopener noreferrer">touch USD 5 billion</a> by 2025.
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Swiggy is likely to fund the USD 700 million investment in Instamart by using cash from the SoftBank and Prosus-led USD 1.25 billion round it closed in July. A significant chunk of the money will go into adding <a href="https://www.moneycontrol.com/news/business/startup/swiggy-to-invest-700-million-in-instamart-clocks-one-million-weekly-grocery-orders-7782941.html" target="_blank" rel="noopener noreferrer">100 dark stores</a> over the next three months, which will take the total number of these delivery-only outlets to 250.
Based on the company's current growth trajectory, Swiggy CEO Sriharsha Majety expects Instamart to reach USD 1 billion in annualized gross merchandise value (GMV) in the next three quarters.
“With our food delivery business trending at a USD 3 billion annualized GMV run rate, and Instamart’s supercharged growth, we’re very excited about our convenience mission coming to life in a very big way,” said Majety.

Swiggy to invest USD 700 million in express grocery delivery service as quick commerce competition intensifies

Swiggy

Grocery delivery

India

The Alibaba Cloud x KrASIA Global Startup Accelerator continues! The program brings together new technologists, venture capitalists, and other players across Asia to identify startups that are compatible with Alibaba’s ecosystem. The accelerator’s selection process involves a series of Demo Days and we've seen startups from all across Asia pitch at the <a href="https://kr-asia.com/alibaba-x-krasia-global-startup-accelerator-launches-demo-day" target="_blank" rel="noopener noreferrer">Malaysia</a>, <a href="https://kr-asia.com/recap-of-the-alibaba-x-krasia-global-startup-accelerator-indonesia-demo-day" target="_blank" rel="noopener noreferrer">Indonesia</a>, and <a href="https://kr-asia.com/recap-of-the-alibaba-cloud-x-krasia-global-startup-accelerator-hong-kong-demo-day" target="_blank" rel="noopener noreferrer">Hong Kong</a> sessions. The next markets in focus are Singapore and Thailand.
Registration for the Singapore-Thailand joint Demo Day—which is specifically for startups based in, operating in, or have plans to enter these two countries—is <a href="https://36krglobal.typeform.com/ACGSA-SGTH" target="_blank" rel="noopener noreferrer">now open</a> and will run until December 23, 11:59 p.m. (GMT +8). The Demo Day itself will take place on January 11, from 2:00 to 4:00 p.m. (GMT +8).
Alibaba Cloud welcomes startups from any country, industry, and that are operating at any stage.
Startups that join this Demo Day stand to win the following prizes:
<ul>
<li aria-level="1">USD 60,000 in Alibaba Cloud credit</li>
<li aria-level="1">1-on-1 technical support for setup and migration</li>
<li aria-level="1">Connections to top VCs in Southeast Asia and China</li>
<li aria-level="1">Profiles published in English and Chinese by KrASIA and 36Kr Global</li>
</ul>
All startups that complete the registration process will also receive USD 3,000 in Alibaba Cloud credit. This will be deployed after January 11 2022.
<img class="alignnone size-full wp-image-132065" src="https://console.kr-asia.com/wp-content/uploads/2021/09/2021916-172957.png" alt="" width="2084" height="1089" srcset="https://console.kr-asia.com/wp-content/uploads/2021/09/2021916-172957.png 2084w, https://console.kr-asia.com/wp-content/uploads/2021/09/2021916-172957-300x157.png 300w, https://console.kr-asia.com/wp-content/uploads/2021/09/2021916-172957-1024x535.png 1024w, https://console.kr-asia.com/wp-content/uploads/2021/09/2021916-172957-768x401.png 768w, https://console.kr-asia.com/wp-content/uploads/2021/09/2021916-172957-1536x803.png 1536w, https://console.kr-asia.com/wp-content/uploads/2021/09/2021916-172957-2048x1070.png 2048w" sizes="(max-width: 2084px) 100vw, 2084px" />
The selection process begins after you complete the registration process. Judges include representatives of Alibaba Cloud, venture capitalists, and research experts from 36Kr Global. They will consider the company’s corporate deck when selecting startups for the Thailand-Singapore Demo Day. The full selection criteria is available on the program’s <a href="https://alibabacloud.kr-asia.com/?utm_source=ACGSAsite&amp;utm_medium=article1&amp;utm_campaign=ACGSA" target="_blank" rel="nofollow noopener noreferrer" data-type="external">official website</a>.
Here’s what you need to provide when you register:
<ul>
<li aria-level="1">Your startup’s name</li>
<li aria-level="1">Main point of contact’s details: Full name, mobile number, business email address</li>
<li aria-level="1">Funding stage</li>
<li aria-level="1">PDF of your corporate deck</li>
</ul>
<a href="https://alibabacloud.kr-asia.com/?utm_source=ACGSAsite&amp;utm_medium=article1&amp;utm_campaign=ACGSA" target="_blank" rel="nofollow noopener noreferrer" data-type="external">Click here</a> to learn more and register for the second Alibaba Cloud x KrASIA Global Startup Accelerator Singapore-Thailand joint Demo Day on January 11, 2022.
<div data-tf-widget="FE3iVK2b" data-tf-iframe-props="title=Alibaba Cloud x KrASIA Global Startup Accelerator" style="width:100%;height:600px;"></div>
<script src="//embed.typeform.com/next/embed.js"></script>
<img class="alignnone size-full wp-image-129712" src="https://console.kr-asia.com/wp-content/uploads/2021/08/QR-code_transaprent-bg.png" alt="" width="2084" height="1032" srcset="https://console.kr-asia.com/wp-content/uploads/2021/08/QR-code_transaprent-bg.png 2084w, https://console.kr-asia.com/wp-content/uploads/2021/08/QR-code_transaprent-bg-300x149.png 300w, https://console.kr-asia.com/wp-content/uploads/2021/08/QR-code_transaprent-bg-1024x507.png 1024w, https://console.kr-asia.com/wp-content/uploads/2021/08/QR-code_transaprent-bg-768x380.png 768w, https://console.kr-asia.com/wp-content/uploads/2021/08/QR-code_transaprent-bg-1536x761.png 1536w, https://console.kr-asia.com/wp-content/uploads/2021/08/QR-code_transaprent-bg-2048x1014.png 2048w" sizes="(max-width: 2084px) 100vw, 2084px" />

Registration opens for the Alibaba Cloud x KrASIA Global Startup Accelerator Singapore-Thailand joint Demo Day

A regulatory bypass that allows major Chinese tech companies to go public in Hong Kong and the United States is now under official scrutiny. New, stringent rules are being drafted to redefine how these business structures can be used by corporations.
Beijing plans to ban Chinese companies from going public overseas through variable interest entities (VIEs), which might result in the delistings of some firms deemed to be involved with handling sensitive data or technologies, <a href="https://www.bloomberg.com/news/articles/2021-12-01/china-plans-to-ban-loophole-used-by-tech-firms-for-foreign-ipos" target="_blank" rel="noopener noreferrer">Bloomberg</a> reported on Wednesday.
The China Securities Regulatory Commission (CSRC) <a href="http://www.cac.gov.cn/2021-07/10/c_1627503724456684.htm" target="_blank" rel="noopener noreferrer">denied reports</a> that said it was considering a ban on VIEs.
<a href="https://www.caixinglobal.com/2021-12-01/chinese-regulator-denies-reports-on-vie-listing-ban-101812483.html" target="_blank" rel="noopener noreferrer">Caixin</a> reported that the CSRC, the National Development and Reform Commission, and the Ministry of Commerce are mulling a new regulatory framework for VIEs, but did not report additional details.
Nearly all of China’s major internet firms, including Alibaba, JD.com, and Baidu, went public in the US by utilizing VIE structures, according to a <a href="https://www.uscc.gov/sites/default/files/Research/The%20Risks%20of%20China%E2%80%99s%20Internet%20Companies%20on%20U.S.%20Stock%20Exchanges%20-%20with%20Addendum.pdf" target="_blank" rel="noopener noreferrer">report</a> from United States-China Economic and Security Review Commission.
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As foreign investment is banned from flowing into China’s internet industries, some companies managed to go public via overseas stock exchanges with the VIE framework. VIEs are usually registered in tax havens like the Cayman Islands, and are essentially holding companies designed to establish profit-sharing mechanisms between foreign investors and Chinese firms. On paper, VIEs guarantee that dividends flow to foreign investors while the business remains controlled by the Chinese entities.
High levels of liquidity, the prestige of an international presence, and US investors’ willingness to shoulder risk are factors that attract Chinese companies to issue shares abroad, <a href="http://www.foreilaw.com/lore/swflfw/swxs/910879.html" target="_blank" rel="noopener noreferrer">said</a> Guan Qingyou, director of research firm Rushi Finance.
Sina, which owns the microblogging service Weibo, was the first to go public in the US through the VIE framework in 2000. In the following two decades, companies including Tencent, Baidu, Alibaba have all gone public overseas through VIEs.
Over the past year, Chinese authorities have been tightening control on the tech sector, establishing new rules and issuing fines related to data security and antitrust practices. Investors have been exiting their positions, wiping more than USD 1 trillion off the market by November, according to <a href="https://apnews.com/article/business-xi-jinping-shanghai-hong-kong-china-f2dd6c1bdfe81f704d1486f09888336d" target="_blank" rel="noopener noreferrer">AP</a>.
VIEs have existed in a legal gray area for more than two decades. In July, China’s top internet regulator, the Cyberspace Administration of China, drafted a stringent <a href="http://www.cac.gov.cn/2021-07/10/c_1627503724456684.htm" target="_blank" rel="noopener noreferrer">rule</a>—companies with over 1 million users must undergo cybersecurity checks before they go public in foreign countries.
Didi became the target of a tough data security probe shortly after it went public in the US in late June. The ride-hailing app <a href="https://kr-asia.com/didis-app-wiped-off-app-stores-in-china-after-mega-ipo" target="_blank" rel="noopener noreferrer">was taken down from app stores</a>, as regulators were concerned about its handling of personal data.
Several Chinese tech companies, including the popular fitness app Keep and the largest audio and podcasting app Himalaya, have halted their long-planned US IPOs.
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VIE pioneer Sina is now seeking a secondary listing in Hong Kong. Didi is <a href="https://kr-asia.com/chinas-didi-global-to-delist-from-new-york-in-favor-of-hong-kong" target="_blank" rel="noopener noreferrer">preparing to delist from the US</a> and debut in Hong Kong, the company said on Friday.
Hong Kong listings could be exempted from the VIE ban, Bloomberg reported.
Besides asking companies to carefully handle personal data and roll out privacy laws, China has also been building a higher barrier for its domestic data treasure trove. In October, Tesla finished building its data center in Shanghai, pledging that it would comply with the regulations, and won’t share data collected in China with overseas entities.

What are VIEs and why are they important for Chinese tech companies?

Didi Global announced on Friday that it has begun the process of delisting its shares from the New York Stock Exchange and preparing for a Hong Kong listing in a dramatic retreat from its USD 4.4 billion US initial public offering just six months earlier.
The decision was made after "careful consideration," the leading Chinese ride-hailing platform said. Didi said US shareholders would eventually be able to convert their holdings to Hong Kong shares.
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Didi's listing alarmed Chinese regulators who worried that it could give US officials access to sensitive customer data. The authorities responded with a series of measures against the company, including banning it from signing up new customers and forcing it out of local app stores.
Its shares have fallen more than 50% since the IPO, leaving it with a market capitalization of USD 37.62 billion.
This article first appeared on <a href="https://asia.nikkei.com/Business/China-tech/China-s-Didi-Global-to-delist-from-New-York-in-favor-of-Hong-Kong" target="_blank" rel="nofollow noopener noreferrer" data-type="external">Nikkei Asia</a>. It’s republished here as part of 36Kr’s ongoing <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" target="_blank" rel="nofollow noopener noreferrer" data-type="external">partnership with Nikkei</a>.

China's Didi Global to delist from New York in favor of Hong Kong

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… href="https://laotiantimes.com/2021/08/18/bank-of-laos-warns-public-against-use-of-cryptocurrency/" target="_blank" rel="noopener noreferrer">notice</a> warning the public about the illegal use of crypto, including Bitcoin, Ethereum, and Litecoin. The notice highlighted that many citizens are "still trading digital currencies" despite the government’s 2018 ban.
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Santaniello highlighted how the current laws governing crypto in Laos have gray areas. “The current regulation does not explicitly mention cross-border transactions and the provision of services offshore. These types of transactions may be subject to the interpretation of the local authorities whether they are permitted or not.” He warned that the regulations recently presented for the trial project fail to provide a clearer framework regarding crypto trading.
Besides this lack of clarity, a local legal expert who spoke to KrASIA on the condition of anonymity mentioned that there hasn’t been “enough transparency” on how the companies involved in the trial project were selected. He added that the Joint Development Bank is the only financial institution part of the project, while the rest of the chosen companies don’t have any previous experience in crypto mining.
“Most of the companies chosen by the Lao authorities to participate in the sandbox program have been involved in the past in important infrastructure projects and are familiar with working with the government,” the source said.
<figure id="attachment_135955" aria-describedby="caption-attachment-135955" style="width: 1024px" class="wp-caption aligncenter"><img class="wp-image-135955 size-large" src="https://console.kr-asia.com/wp-content/uploads/2021/11/note-thanun-dhbcpyJo4m8-unsplash-1024x768.jpg" alt="" width="1024" height="768" srcset="https://console.kr-asia.com/wp-content/uploads/2021/11/note-thanun-dhbcpyJo4m8-unsplash-1024x768.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2021/11/note-thanun-dhbcpyJo4m8-unsplash-300x225.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2021/11/note-thanun-dhbcpyJo4m8-unsplash-768x576.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2021/11/note-thanun-dhbcpyJo4m8-unsplash-1536x1152.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2021/11/note-thanun-dhbcpyJo4m8-unsplash-2048x1536.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-135955" class="wp-caption-text">Significant expansion of crypto mining might bring more pressure to the Mekong River ecosystem, according to experts. Photo by Note Thanun from Unsplash.</figcaption></figure>
<h3>Rising interest in the local crypto market</h3>
Despite regulatory and environmental concerns, Santaniello is optimistic about the future of the local crypto industry. “It is likely that crypto trading transactions will continue to grow. A regulatory framework will allow for better management of these transactions, which to date may be difficult to assess or control,” he said.
The potential local market for crypto in Laos has already attracted the attention of international financial institutions, Santaniello said. “We have been regularly receiving requests for advice on the cryptocurrency framework in Laos. There is a potential market of a size that’s interesting enough for clients to request our advice.”
Weatherby believes it is also worth exploring if crypto mining could support the development of alternative energy projects like wind and solar, which Laos has the potential to develop. “It doesn’t necessarily have to be hydropower,” she said.

As Laos rolls out welcome mat for crypto mining, big questions remain unanswered

Fintech

Cryptocurrencies