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We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.
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New Chinese Listings and Delistings 💵
Earlier this year, the US government proposed legislation on new auditing standards for publicly listed foreign firms, which was largely aimed at delisting Chinese companies from the NYSE and Nasdaq. While this was just one part of a broader US-China trade war, the last few months have been full of announcements of Chinese companies either planning to delist in the US or have a separate listing on the Hong Kong Stock Exchange.
A few weeks ago, Chinese news and social media firm Sina publicly discussed a potential delisting after 20 years of trading on the Nasdaq. Sina is best known for creating Weibo, which is roughly the Chinese equivalent of Twitter. Sina was exploring an acquisition offer that valued the company at $2.7 Billion and moving the company to a new legal structure outside the US.
This week, another major Chinese company Ctrip announced similar plans to delist from the Nasdaq and take in new investment. Ctrip is the largest online travel company in China, kind of like a Chinese version of Booking.com, and owns major European travel company Skyscanner. Ctrip has been listed on the Nasdaq since 2003 and will likely be exploring a listing on the Hong Kong Stock Exchange.
And finally, China’s second-largest search engine Sogou has received a buyout proposal from Tencent that would take the company off the New York Stock Exchange. The delistings keep on coming.
India Explores More Bans of Foreign Entities 🛑
The Indian government banned 59 Chinese mobile apps a couple of weeks ago. Now the government is exploring a new list of 275 Chinese apps that may potentially violate user privacy or national security. While the recent ban of 59 mobile apps included some very high profile companies like TikTok, there are still many other major Chinese companies that could be victims of this new potential ban.
Some companies are of Chinese origin (AliExpress) and others have major Chinese ownership stakes (PUBG), which leaves a relatively wide definition of country that fits under the potential ban. Whether this next round of banning goes ahead or not, operating under this level of uncertainty provides huge challenges for any Chinese company in India.
Victoria Beckham Looks to China 🇨🇳
Victoria Beckham is the latest Western celebrity to dive into Chinese e-commerce. Victoria Beckham is a former member of the 1990s pop group the Spice Girls and is married to world famous football player David Beckham. She is best known today as a fashion designer and recently launched a new brand called Victoria Beckham Beauty.
Victoria Beckham Beauty just launched on Alibaba’s Tmall Global e-commerce site. Victoria Beckham hosted a launch event that included a livestream with Viya, one of China’s biggest livestreamers, and a set of specific skincare products exclusive to the Chinese market. This market entry playbook should work well for any Western celebrity with clout and a brand to sell. Dive into Tmall, partner with a local Chinese KOL for a livestream, and invest in managing your online community of Chinese fans.
“It’s an amazing, blow-your-mind trend. The livestreaming phenomenon is indicative of the pace of development and innovation coming out of China. It’s absolutely brilliant. On the practical side, it promotes education and gives brands a way to inform consumers about products. At the same time, it’s riveting entertainment that creates a great deal of engagement and excitement about products.” - Sarah Creal, CEO of Victoria Beckham Beauty
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