Wednesday Tech Briefing: Meituan, Film Regulator, HelloBike

DEALS & FUNDRAISING

1. Meituan Dianping Confirms IPO Price at HK$69 Per Share

What: Meituan Dianping, China’s largest online services provider, is looking to raise the equivalent of $4.9 billion in its Hong Kong initial public offering (IPO), at a price of HK$69 ($8.79) per share and a valuation of $53.4 billion.

Why it’s important: The price is near the top of the HK$62 to HK$70 range set in earlier proposals. The IPO will inject capital into the company, which has yet to turn a profit and continues to face fierce competition in China’s food delivery and bike-sharing businesses. (IPO allotment results)

BIG TECH COMPANIES

2. Tencent Joins Car Maintenance Startup’s $450 Million Funding Round

What: Chinese car-maintenance startup Tuhu has completed a $450 million fundraising round from investors that include Tencent Holdings Ltd. and Sequoia Capital.

Why it’s important: Tuhu was founded in 2011 and provides services such as automobile repair and insurance in 405 Chinese cities with more than 10,000 partners.

Big picture: The aftermarket of the world’s largest auto market has been flourishing in recent years, prompting massive investor interest mostly from the internet sector. (Caixin)

3. HelloBike Partners With Ride-hailing Services in Rebrand

What: Alibaba-backed bike-sharing platform HelloBike has rebranded itself as HelloChuxing after signing partnerships with transportation services providers including ride-hailing company Didi Chuxing and Auto Navi Maps as part of an expansion into other transportation services

Why it’s important: HelloBike has been emerging as a major contender in a shared-bike industry dominated by money-losing providers Ofo and Mobike. HelloBike CEO Yang Lei told Caixin his company was in a relatively good financial situation, unlike rival companies. (Caixin, link in Chinese)

POLICY

4. Film Regulator to Ban Cinema Ticket Subsidies

What: China’s top film regulator has met with major movie theater chains to signal a ban on ticket subsidizing, sources have told Caixin.

Why it’s important: Subsidizing moviegoers has been a common tactic to boost box-office figures for years, often leading to ticket prices less than 10 yuan ($1.46).

Big picture: After fierce and “barbaric” competition, the market is now dominated by Alibaba’s Taopiaopiao and Tencent’s Maoyan. The duopoly, however, might be shaken up by the upcoming ban. (Caixin)

5. Shanghai Supports AI Projects with a Maximum of 20 Million Yuan

What: Shanghai has announced a fund that will endow individual artificial intelligence (AI) projects with a maximum of 20 million yuan ($2.9 million) or 30% of their valuations, authorities announced at the World Artificial Intelligence Conference on Tuesday, signaling support for the industry.

Why it’s important: The plan marks the latest effort by Shanghai to boost the local AI industry, designated a key strategic initiative by Beijing. (Xinhua, link in Chinese)

PRODUCT

6. WeChat Pay and Alipay Join Hong Kong's New Faster Payment Service

What: Tencent’s mobile payment system WeChat Pay and Alibaba’s Alipay have been integrated into Hong Kong’s Faster Payment System, which lets customers make interbank and e-wallet transfers in real-time and without transaction fees.

Why it’s important: This will also mark the first time users will be able to transfer funds between the two cashless payment operators. The service will be available from Sept. 30.

Big picture: WeChat Pay has been slow to expand in Hong Kong while Alipay enjoys relative success as it serves as the payment system for e-commerce platform Taobao and Tmall. (SCMP)

Compiled by He Shujing