Tencent and the new business of literature IP – China’s latest business and technology news

Internet giant Tencent this week launched a successful initial public offering (IPO) in Hong Kong for its online literature unit, China Literature Ltd., raising $1.1 billion — the top of its indicative range, Reuters reports.

• Bloomberg says Tencent strategy is “plowing money into music, e-books and video streaming — the content it needs to keep users hooked on its WeChat social media and messaging service,” and “grow into an advertising behemoth akin to Alibaba, Google and Facebook.”
• TechNode reports that “Tencent is planning another listing for its music spin-off in the near future,” another push into “a whole new industry chain surrounding online literature” intellectual property (IP) that “involves music, games, TV dramas, and movie production.”  
• One example of this trend is the online fantasy novel Eternal Love (三生三世十里桃花 sānshēng sānshì shílǐ táohuā) by Tangqi Gongzi 唐七公子, which was successfully adapted for TV and mobile game.

• Business tax
  Govt ends business tax, cuts more burdens for enterprises / Chinese State Council
• Plagiarism
  Caixin tells financial news outlet to stop stealing content / Sixth Tone
• Investor activism
  Dissident shareholder falls in battle for Sina board seat / Caixin
  “While the defeat marks a setback for Aristeia, it was not unexpected” because Sina’s chairman and CEO, Charles Chao, has “big holdings in the company.”
• Hong Kong access to mainland markets
  900 kilos of gold traded after launch of new ‘Connect’ system, linking Hong Kong and Shenzhen / SCMP
  “US$38.45 billion worth of the precious metal swap hands after Friday evening trading kick-off.”
• Condoms
  Domestic startups challenging foreign condom brands / China Daily
• Space technology
  China’s secretive spaceplane may launch in 2020 / Ars Technica
• Apple
  Apple Q4 2017 earnings: Apple is finally growing again in China / Quartz
• Border with North Korea
  Liaoning government seeks bailout for troubled Dandong port / Caixin
• Capital restrictions and regulations
  China to tighten control over complex outbound deal structures / FT (paywall)
  $5.2B Hong Kong tower sale points to China turning the money tap back on / Bloomberg
• P2P lending
  Chinese peer-to-peer lender Hexindai shrugs off tighter scrutiny concerns, rising more than 60pc on Nasdaq debut / SCMP
• Commodities
  China metal magnate faces reality under Xi / Bloomberg
  Everyone’s a metals bull as global economic engine fires up / Bloomberg
• Bonds
  Foreigners try a new strategy in China’s fragile bond market / Bloomberg