Financial News
Written by: Ou Jiajun
2021-01-26 16:52
Last update date: 2021-01-26 16:52
Kuaishou Technology (1024) launched its first-day IPO today, and market participants have responded enthusiastically, and margin subscriptions are even more popular.
Before entering the flight, investors need to understand not only the business, but also the risks.
Among them, the IPO documents mentioned China's Internet regulatory concerns and the risks of US sanctions.
Kuaishou’s prospectus pointed out that given that China’s Internet business is highly regulated, the Chinese government’s tightening of control over short video, live broadcast and e-commerce industries may limit the company’s ability to maintain or increase the platform’s user base or user traffic, which in turn affects performance.
Live virtual rewards may be affected by mainland regulation
In November 2020, the General Administration of Market Supervision issued the "Guidelines for Antitrust in the Field of Platform Economy (Draft for Comment)". Kuaishou expected that the guidelines would not have a significant impact on the business, but they may increase the burden of compliance. Therefore, the final implementation of the rules will Whether it will adversely affect business and performance is unknown.
In the same month, the State Administration of Radio and Television issued the "Notice on Strengthening the Management of Online Show Live and E-commerce Live Broadcasting", requiring the live broadcast platform to impose restrictions on the amount of virtual gifts that users can give each day and every month, and the amount that can be given each time. Wait.
Kuaizhizhi, the regulator has not issued clear guidelines on setting virtual rewards consumption caps, so it is impossible to assess the impact on platform virtual rewards activities. However, since most of the revenue comes from the live broadcast business during the track record period, any restrictions may affect Performance has a negative impact.
Sanctions or cut opportunities for overseas market expansion
In addition to China, Kuaizhi, actions taken by overseas governments on allegations of data privacy and data security threats, and future adverse restrictions on Chinese video content, social media, or the operation of technology companies, may reduce the expansion of overseas markets. opportunity.
Under Trump, the US government has repeatedly provoked sanctions against China's technology industry. Quickly, the US economic sanctions prohibit the supply of products and services to countries, governments, and individuals targeted by the US economic sanctions.
The UK financial sanctions and EU sanctions also have similar systems, prohibiting the supply of products and services to countries, governments and individuals on their sanctions lists. However, it is emphasized that no users of the platform have been found in the past that seem to be located in any target country for government economic sanction ,
However, large investment institutions in the United States are focusing on quick investment. The total investment in this IPO is as high as US$1.39 billion, accounting for 25% of the IPO funds raised, including Fidelity International, Invesco, BlackRock, etc., among which Capital Group (capital group) It is also the single largest cornerstone investor with a capital of 500 million US dollars.
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