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TikTok’s China rival is coming out of obscurity

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HONG KONG, Nov 24 (Reuters Breakingviews) – Kuaishou Technologies (1024.HK) could also be coming out of its bigger rival ByteDance’s lengthy shadow. China’s $50 billion short-video streaming app has been caught in a regulatory firestorm learn extra since its February preliminary public providing, the shares shedding some two-thirds of their worth, however indicators of enchancment are rising.

After declining via the 12 months, each day lively customers flew previous 300 million within the third quarter. Users are spending extra time searching too. A 77% acquire in promoting income, the highest supply of earnings, was a pleasing shock contemplating that line merchandise had dried up for privately held ByteDance, per Chinese state media citing sources who attended an inside firm assembly.

Some of the elevate is perhaps momentary. Kuaishou received broadcasting rights of the Tokyo Olympics, which helped generate 73 billion clicks on associated content material. But a nip and tuck of its expensive abroad operations is transferring alongside properly. Its enterprise worth is buying and selling at 2.9 occasions forecast gross sales after a wealthy begin, per Refinitiv. That’s half the ratio of smaller rival Bilibili (9626.HK). (By Yawen Chen)

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Editing by Una Galani and Katrina Hamlin

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Reuters Breakingviews is the world’s main supply of agenda-setting monetary perception. As the Reuters model for monetary commentary, we dissect the massive enterprise and financial tales as they break world wide day-after-day. A world group of about 30 correspondents in New York, London, Hong Kong and different main cities gives professional evaluation in actual time.

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