Wednesday Tech Briefing: Tencent Invests $150 Million in Reddit

1. Vivo Launches Brand to Step Up Fight in First-Tier Cities

Chinese phone-maker Vivo launched iQOO, a brand of “cutting-edge phones” across a range of price points, Tuesday. The new brand’s first product will be unveiled at the Mobile World Congress in late February, sources told Caixin.

Vivo is one of China’s largest smartphone-makers, controlling one-fifth of the domestic market at the end of 2018. But most of Vivo’s customers are based in smaller second- and third-tier cities, and it is looking to deepen its reach in first-tier cities.

With China’s smartphone market continuing to contract, other companies including Huawei, Xiaomi, and OPPO have also launched spinoffs in an effort to lock in more customers. (Caixin, Link in Chinese)

2. Wanda Pares Down Retail Assets With Store Sales to Suning

Suning, one of China’s largest online retailers, will acquire 37 stores from Wanda Department Stores Co. Ltd., a subsidiary of Wanda, for an undisclosed amount, Suning announced Tuesday.

Wanda, a giant in commercial property development, has stepped up efforts to pare down noncore assets as the company seeks to reduce its debt overhang after years of aggressive business expansion.

Suning has sped up efforts to set up physical retail outlets across the country to compete with rivals including Alibaba and JD.com. Chairman Zhang Jindong said the deal will help Suning offer service coverage “from online to offline.” (Caixin)

3. Government Urges Data Centers to Go Green

Chinese data centers should meet international standards in energy consumption by 2022, according to a memo issued by three government agencies on Tuesday.

The Ministry of Industry and Information Technology, together with two other agencies, called for older, less energy-efficient equipment at data centers to be replaced, while advising data centers to speed up the deployment of clean energy. (Official announcement, link in Chinese)

4. Tencent Posts $150 Million for Forum Platform Reddit

Tencent Holdings Ltd. has led a $300 million funding round in the U.S. forum site Reddit, in which it invested $150 million.

The funding gives Reddit a market valuation of $3 billion. The site plans to use the capital for international expansion and stepping up competition with Facebook and Google.

Tencent usually targets overseas gaming companies for its investments, but recently it has started to bet on other social media platforms. It became Snap’s largest shareholder in 2017. (Caixin)

5. JD.com Buys Five-Star Beijing Hotel for $400 Million

Chinese e-commerce giant JD.com has paid about 2.7 billion yuan ($400 million) to acquire a Beijing hotel, according to company data provider Tianyancha.

JD.com will turn the hotel into space for research and development, as well as offices, to support future development in Beijing’s Haidian district, home to many of China’s biggest tech companies. (Caixin)

Compiled by He Shujing

Contact editor Teng Jing Xuan (jingxuanteng@caixin.com)