daily crunch: china presents ‘rectification’ plan for ant group
Recent developments include potential restructuring for Ant Group by the Chinese government, Tesla’s anticipated entry into the Indian market next year, and a new identification requirement for drones announced by the FAA. This is your Daily Crunch for December 28, 2020.
Leading the headlines: China details ‘rectification’ plan for Ant Group
Just over two months ago, Chinese regulators intervened to suspend the initial public offering of Ant Group, the payments and financial technology firm originally established as part of Alibaba approximately ten years ago.
The government has now presented a plan outlining the steps Ant Group must take to achieve compliance and potentially proceed with its public offering. These measures include a renewed emphasis on payment services, securing the necessary authorizations for its lending operations, forming a financial holding company, revising several of its existing business areas – encompassing credit, insurance, and wealth management – and strengthening compliance within its securities operations.
Concurrently, Chinese authorities are also conducting an investigation into Alibaba regarding potential antitrust violations. This increased scrutiny is leading international investors to reduce their holdings in Chinese technology companies.
Major technology companies
Tesla is scheduled to begin operations in India in “early” 2021, according to a statement from a prominent Indian government official.
Although Samsung has not yet officially unveiled the Galaxy S21, pre-orders are already being accepted for those subscribed to Samsung Mobile’s email list.
The U.S. government is appealing the injunction that blocked its attempt to prohibit TikTok – A federal judge in Washington, Carl Nichols, was the second U.S. judge to halt the Commerce Department’s effort to prevent the download of the TikTok application within the United States.
Startups, funding, and venture capital
Zuoyebang, a Chinese online education platform, has secured $1.6 billion in funding from investors including Alibaba, intensifying competition among leading online learning applications in China.
Indian startups collectively raised $9.3 billion in 2020 – This marks the first time since 2016 that Indian startups have raised less than $10 billion in a single year.
Equity Monday: Tech news continues even during the holiday season – Alex Wilhelm provides analysis of the latest developments in the startup and venture capital landscape, including coverage of stories featured in this newsletter.
Insights and analysis from Extra Crunch
How Niantic adapted Pokémon GO during a year of limited mobility – Industry estimates suggest that 2020 was the most financially successful year to date for Pokémon GO.
Key factors for successful international expansion – Levin Bunz analyzed over one hundred companies incubated by Rocket Internet as they attempted to expand internationally.
The semiconductor and chip industry is expected to stabilize in 2021 (with the exception of Intel) – Four key trends to monitor, including venture capital investment in silicon startups and trade relations between the U.S. and China.
(Extra Crunch is our subscription service designed to provide accessible information about startups. A special holiday offer is available through January 3. Further details about the offer can be found here.)
Other noteworthy news
The FAA’s new regulation mandates Remote ID for drones – Remote ID functions as a digital identification system for unmanned aircraft.
Despite music’s importance in 2020, support for musicians was lacking – In a year when music provided solace, why wasn’t reciprocal support extended to the music community?
Original Content podcast: Season two of “The Mandalorian” delves into Star Wars lore – The second season of “The Mandalorian” recently concluded on Disney+.
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